stay denied as five face octaviar claims

http://www.theaustralian.com.au/business/property/stay-denied-as-five-face-octaviar-claims/story-fn9656lz-1226764624941#
Property Stay denied as five face Octaviar claims by: SARAH DANCKERT From: The Australian November 21, 2013 12:00AMLITIGATION: The Brisbane Supreme Court case of five former Octaviar executives has begun after the court dismissed an application by two of the defendants for a stay of proceedings after they were charged in New Zealand with criminal offences relating to another corporate collapse. Octaviar's former chief financial officer David Anderson and former executive Craig White had made the application. The Australian Securities & Investments Commission brought the civil matter against Mr Anderson, Mr White and three other Octaviar executives, including former chief executive Michael King, over the alleged misappropriation of $147.5 million from the Premium Income Fund. The Premium Income Fund was the former MFS-managed fund that owned $770m in commercial property mortgages before it ran into difficulty during the global financial crisis. It is now managed by an unrelated entity, Wellington Capital, which took control after the collapse of Gold Coast financier Octaviar (formerly MFS). Mr Anderson and Mr White sought the stay after being charged by the Financial Markets Authority in New Zealand over their alleged involvement in the failure of New Zealand commercial property financier OPI Pacific Finance. Lawyers for Mr King told the court the former chief executive wanted the trial to continue. Mr King, Mr Anderson, Mr White and the other defendants in the Brisbane Supreme Court matter are contesting the case brought by ASIC. In dismissing Mr Anderson and Mr White's request, judge George Fryberg said it was important to push ahead with the trial as key evidence in the form of emails presented by ASIC was disputed by the defendants and, as such, witness testimony would be vital in deciding the matter. "There has already been considerable delay. Further delay will inevitably degrade memories," Justice Fryberg said. In New Zealand, OPI went into receivership in September 2009 and was put into liquidation in November 2011. Its collapse affected more than 10,000 investors. The New Zealand FMA's head of enforcement, Belinda Moffat, said the charges laid by FMA allege that 2007 OPI offer documents contained untrue statements relating to the performance and management of the business. "This included a failure to disclose to investors adverse changes to the financial position of the company resulting from the advance of $100m to MFS Pacific Investments Pty Limited, a related party finance company based in Australia," she said. According to a press release issued in New Zealand, the charges carry a five-year maximum term of imprisonment or a $NZ300,000 ($266,000) fine. Mr Anderson, Mr White and two other New Zealand businessmen charged by the FMA over the OPI matter plan to vigorously defend the charges. The FMA matter will be heard by the Auckland District Court on December 3. The Brisbane Supreme Court trial continues - See more at: http://www.theaustralian.com.au/business/property/stay-denied-as-five-face-octaviar-claims/story-fn9656lz-1226764624941#sthash.ZyaEAFpJ.dpuf