OPI Pacific Finance directors sentenced to community work

Two former directors of property finance company OPI Pacific Finance, which collapsed owing $247 million, have been sentenced to community work and ordered to pay $A100,000 in reparation.

Last month, Mark Lawrence Lacy and Jason Robert Duncan Maywald pleaded guilty to two Securities Act charges relating to a registered prospectus and an advertisement distributed in 2007, which the FMA said contained untrue statements.

OPI provided finance to commercial property developers and investors but went into receivership in 2009, before being placed in liquidation two years later.

More than 10,000 investors were owed about $247 million, and have so far been repaid about 30.23 cents in the dollar.

Today, Justice Pamela Andrews sentenced the two former directors, who are Australian residents, to 200 hours community work, which will be carried out in New Zealand.

They were also ordered to pay $A100,000 to the company’s receivers.

FMA acting director of enforcement and investigations Paul O’Neill says the 2007 OPI offer documents contained untrue statements about its performance and management, as well as the non-disclosure of adverse changes to its financial position.

“This prevented investors from making informed decisions about their investments by not disclosing key information about the company.”

Mr O’Neill says the sentence reflects the importance of director responsibilities.

Two fellow OPI directors, David Mark Anderson and Craig Robert White, will next month go to trial in the High Court at Auckland after pleading not guilty to the FMA's charges.

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