New Zealand's Financial Markets Authority: Guilty Pleas In Dominion Finance Case

Three former directors of Dominion Finance and North South Finance have today pleaded guilty to making untrue statements in a prosecution taken by the Financial Markets Authority.

Vance Arkinstall and Richard Bettle each pleaded guilty to five Securities Act charges including making untrue statements in a Dominion Finance investment statement and extension certificate, and making an untrue statement in a North South Finance extension certificate. Paul Forsyth pleaded guilty to seven charges of making untrue statements.

They will be sentenced on 16 August.

“Vance Arkinstall, Richard Bettle and Paul Forsyth failed to perform their roles as directors,” said FMA Acting Manager, Litigation, Rachael Manttan.

“They did not disclose material information and this left investors in the dark as to the true position of the companies.”

Dominion Finance and North South Finance were subsidiaries of Dominion Finance Holdings Limited. Dominion Finance went into receivership in 2008 owing $176.9 million to 5,900 investors. North South Finance was placed in receivership in 2010 owing $31 million to 3900 investors.