31 May 2013

Investors want Sir Douglas Graham to lose title

3:02 pm on 31 May 2013

Some investors in the collapsed Lombard Finance company want former director Sir Douglas Graham stripped of his knighthood, and the Prime Minister is seeking advice on the matter.

The Court of Appeal on Thursday rejected a bid by Sir Douglas and three other directors, William Jeffries, Michael Reeves and Lawrence Bryant, to have their convictions for making false statements in a company prospectus overturned.

The court has also ruled in favour of an appeal from the Solicitor-General that the men's sentences were manifestly inadequate. It will issue a final judgement once it receives reports on possible home detention.

Lombard Finance collapsed in 2008 owing investors more than $111 million.

Investor Gino Zambon, 78, lost $90,000 in the collapse and says Sir Douglas's knighthood should go, as does 81-year-old Paul Wah, 81, who lost a quarter of his retirement savings.

Prime Minister John Key says he will seek advice on what could happen with Sir Douglas's knighthood and it may be stripped. It was awarded for his service in facilitating Treaty of Waitangi settlements.

Sir Douglas was Justice Minister and Minister in charge of Treaty Negotiations during his 15-year career as a National Party MP, before leaving politics in 1999.