Radio New Zealand - Te Reo Irirangi o Aotearoa

SFO probes collapsed finance company

Updated at 6:09 am on 19 March 2010

The Serious Fraud Office has begun an investigation into collapsed finance company Capital & Merchant Finance Ltd.

The investigation follows a referral by the receiver of the Capital & Merchant Group, Grant Thornton.

SFO chief executive Adam Feeley says the inquiry will focus on specific transactions that appeared to have benefited what he called certain related parties.

He said this involved the use of Capital & Merchant funds in contrived structures with questionable supporting documentation.

He planned to speak to people involved in these matters, including those who may have benefited from them.

Capital & Merchant collapsed in November 2007 owing more than 7000 investors millions of dollars.

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