7 Feb 2013

Strategic Finance directors 'likely to have breached act'

1:23 pm on 7 February 2013

The Financial Markets Authority says six directors in failed company Strategic Finance are likely to have breached the Securities Act following an investigation.

The authority alleges that Kerry Finnigan, Graham Edward Jackson, Marcel Aubrey Lindale, Timothy John Rich, Denis Grenville Thom and David John Wolfenden breached the act over statements made in a prospectus, investment statement and an advertisement between March and April 2008.

The authority says the directors have a chance to respond to its findings and proposed claim before civil proceedings are filed.

Strategic Finance went into receivership in March 2010, owing $383,000 to about 11,000 investors.

Investors have received 10 cents in the dollar back, and the receivers are seeking a settlement with the directors and avoid making a civil claim.