2 Feb 2010

Failed finance company director to plead not guilty

3:02 pm on 2 February 2010

The lawyer for a director from Nathans Finance says his client will plead not guilty to charges brought against him.

A preliminary hearing for four directors of the failed finance company began at the Auckland District Court on Tuesday.

Nathans Finance was placed in receivership in August 2007 owing $174 million to 7000 investors.

Donald Young, Kenneth Moses, John Hotchin and Mervyn Doolan face 21 charges of making untrue statements in advertising and prospectuses.

The court heard creditors are unlikely to recover even 10% of their investments.

Paul Davison, QC, says his client Kenneth Moses will enter a not guilty plea and he expects the others to do the same.