charges laid against opi directors

http://www.stuff.co.nz/southland-times/business/9367481/Charges-laid-against-OPI-directors

The Financial Markets Authority (FMA) has laid charges against four directors of OPI Pacific Finance, which went into receivership in 2009 owing investors about $247 million.

Mark Lawrence Lacy, Jason Robert Duncan Maywald, David Mark Anderson and Craig Robert White are alleged to have made untrue statements in the 2007 OPI offer documents, the FMA said in a statement.

The FMA laid charges under section 58 of the Securities Act. Each charge carries a five year maximum jail term or a $300,000 fine.

OPI was involved in commercial property investment and development lending. It went into receivership in September 2009 and was put into liquidation in November 2011.

More than 10,000 investors are owed about $247m. Secured debenture holders have been repaid up to 25 cents in the dollar.

At the time of its demise, OPI Pacific's collapse ranked behind only Bridgecorp and Hanover in size, owing creditors $456.6m.

The charges laid by FMA alleged that the 2007 OPI offer documents contained untrue statements relating to the performance and management of the business, said FMA Head of Enforcement, Belinda Moffat.

"This included a failure to disclose to investors adverse changes to the financial position of the company resulting from the advance of A$100 million ($115 million) to MFS Pacific Investments Pty Limited, a related party finance company based in Australia," Moffat said.

"Where appropriate, FMA will take action against market participants who it suspects of having breached the law, even if they are based overseas."

The four men are due to appear in Auckland District Court on December 3.

OPI Pacific Finance was formerly MFS Pacific Finance. At the time a moratorium deal was being done in early 2008, it was owned by MFS New Zealand, which was listed on the NZX but owned 38.5 per cent by MFS in Australia, now known as Octaviar.