by Niko Kloeten
Capital + Merchant directors Neal Nicholls and Wayne Douglas were found not guilty at a trial in July on charges related to the non-disclosure of alleged related party lending of about $14.4 million, involving a Palmerston North development known as ‘The Hub Properties'.
However, the pair, together with fellow director Owen Tallentire, were found guilty following a second trial on separate charges involving fraudulent transactions valued at approximately $28 million that occurred between 2004 and 2006.
SFO chief executive Adam Feeley said that the decision to appeal had not been taken lightly.
"There are important points of law that have significance not only to this case, but also the ongoing finance company prosecutions.” said Mr Feeley.
Nicholls and Douglas will appear for sentencing in relation to the second trial on August 31.
Capital + Merchant went into receivership in November 2007 owes $190 million to about 7000 investors and was subsequently put into liquidation, with investors getting none of their money back.
Niko Kloeten can be contacted at niko@goodreturns.co.nz
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