FMA accepts $10.2m from Dominion directors
Money goes to pay out creditors of defunct finance companies.
The Financial Markets Authority has reached a $10.2 million settlement agreement in relation to civil claims against the directors of Dominion Finance Group and North South Finance.
The money will be paid to liquidators and receivers for distribution to investors.
As a result of the settlement, the FMA will end its civil proceedings against the directors.
The FMA’s civil claim against the directors of Dominion and North South (the late Terry Butler, Ann Butler, Robert Whale, Richard Bettle, Paul Forsyth and Vance Arkinstall) was stayed in 2010 pending the outcome of the criminal proceedings against the directors. The directors were sentenced in 2013 and received varying sentences of home detention, community work and reparation payments of between $50,000 and $300,000.
In reaching the settlement, the FMA joined the liquidators of Dominion and the receivers of North South in negotiated settlement discussions. The FMA said directors of the collapsed finance companies failed to perform their roles as directors and did not take adequate steps to ensure they were aware of the company’s true position.
Dominion collapsed into receivership in 2008 owing about $177 million to 5900 investors. North South defaulted in 2008 and was placed in receivership in 2010, owing about $31 million to 3900 investors.
Tim Hunter
Mon, 08 Jun 2015
Mon, 08 Jun 2015
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FMA accepts $10.2m from Dominion directors
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