23 Mar 2012

Too early to know size of NZF alleged loans: SFO

12:36 pm on 23 March 2012

The Serious Fraud Office says it doesn't yet know the size of the alleged related party loans it is scrutinising at finance firm NZF Group.

The company's subsidiary, NZF Money, which provided mainly commercial and residential loans, collapsed in July last year, owing investors $16.4 million.

SFO general manager of financial markets and corporate fraud, Simon McArley, says the office has received complaints from the Trustee and others about loans between NZF Money and its parent company, its directors and some executives, which may have breached the rules.

He says at this stage it is too early to say with any certainty what is involved but the company wasn't large and the collapse will be commensurate with its smaller size.

NZF Group chief executive Mark Thornton says the board and former directors have no knowledge of wrongdoing.