3 Sep 2011

Nathans directors plan to appeal against sentences

2:25 pm on 3 September 2011

Two directors of the failed finance company Nathans Finance have signalled their intention to appeal against their prison sentences.

The company went into receivership in 2007, leaving 7000 investors out of pocket.

Having been found guilty of breaches of the Securities Act by making untrue statements in company documents, Mervyn Doolan, Kenneth Moses and Donald Young were sentenced in the High Court at Auckland on Friday.

Doolan has been sent to jail to two years and four months, and ordered to pay $150,000 in reparation.

Moses has been sentenced to two years and two months in prison and ordered to pay reparation of $425,000.

Young was sentenced to home detention for nine months, plus 300 hours' community work and ordered to pay reparation of $310,000.

Justice Heath told the court the men had been grossly negligent and failed their investors.

"Members of the public who decide to invest their hard-earned income for, among other things, their retirement do so on the basis of accurate and complete disclosure of the true position of the company," he said.