Nelson businessmen behind failed financier Finance & Investments are now under the watch of the Securities Commission, having agreed they won't manage a company or raise money publicly in the future.The Securities Commission has accepted enforceable u
Nelson businessmen behind failed financier Finance & Investments are now under the watch of the Securities Commission, having agreed they won’t manage a company or raise money publicly in the future.
The Securities Commission has accepted enforceable undertakings from Andrew Harding and Murray Scholfield - the partners of Finance & Investments, which went into receivership in September 2007, owing $16 million to 370 investors.
The pair also had an 87% stake in Nelson financier LDC Finance -- also in receivership. The two companies owe investors a collective $37 million.
Terms of the undertaking see Mr Harding and Mr Scholfield agree to not participate in the management of any company or promote an offer of securities at any time in the future.
The written undertakings are enforceable in court if they are not fulfilled, and are usually offered when a company has acknowledged it is in breach of securities law and has agreed to take specific steps to put things right
Finance & Investments was a long established, general financier that used property and vehicles for security, serving clients mostly in the South Island.
The Securities Commission said Mr Harding and Mr Schofield offered securities to the public without an investment statement or registered prospectus.
The regulator said accepting an undertaking did not prevent it from exercising any of its other enforcement powers if necessary.
