31 Jan 2012

Closing statements begin in Lombard case

8:06 am on 31 January 2012

The trial of four directors of the collapsed company Lombard Finance enters its final stages on Tuesday, when closing addresses begin.

Lombard Finance collapsed in April 2008 owing $127 million to about 4400 investors.

Two former justice ministers, Sir Douglas Graham and Bill Jeffries, and fellow directors Michael Reeves and Lawrence Bryant, are on trial at the High Court in Wellington.

They have pleaded not guilty to charges of making false statements in documents issued in 2007 and 2008, and misleading investors.

The charges laid under the Securities Act carry a maximum penalty of five years' imprisonment or fines of up to $300,000.

The closing addresses are expected to take the rest of the week.