27 Jun 2013

Five Star Finance founder admits fraud

4:36 pm on 27 June 2013

The founder of Five Star Finance has pleaded guilty to Serious Fraud Office charges relating to the collapsed company.

Neill Williams pleaded guilty to two charges of theft by a person in a special relationship in the High Court in Auckland on Thursday.

The charges stem from $43 million of related party lending between 2003 and 2007, which breached the company's obligation under its trust deed.

Williams will be sentenced on 22 August. He is already serving three years and seven months in jail for misleading investors through the company's prospectus.

Five Star Finance collapsed in 2007, owing $97 million to more than 2000 investors.