The Financial Markets Authority took proceedings against Mark Andrew Turnock and fellow director Andrew Hrothgar Robinson over claims they made in their 2008 and 2009 statements that there were no related-party transactions during the year.
That was false because the company had related-party loans with Heka Developments, a company Turnock was the sole director and a joint shareholder of.
The loans were for $600,000 and made up 50% of the company’s share capital.
Robinson was sentenced in October 2015 to a year in jail after his guilty plea.
Turnock pleaded guilty in October.
Paul O’Neil, FMA’s head of enforcement, said Turnock’s sentencing reinforces the need for all company directors to ensure financial statements are free from any material mis-statement.
“The false statements resulted in investors being misled about the company’s financial position. By their guilty pleas, the directors have accepted responsibility for failing to fulfil their disclosure obligations to investors,” said O’Neil.
Turnock is now subject to a management ban which will prevent him from being a director or promoter, or having any role in the management of a company based in New Zealand for a period of five years from the date of this conviction.
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