25 Nov 2013

Finance company directors' assets frozen

8:04 pm on 25 November 2013

The Commissioner of Police has frozen a term deposit and property related to two directors of failed finance company Capital + Merchant.

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Wayne Douglas is serving a prison term of 8½ years and Neal Nichols is serving eight years and two months for breaches of the Securities Act.

Capital + Merchant went into receivership in November 2007 owing $167 million to 7500 investors.

The Commissioner of Police has for the first time brought a case to freeze the men's interests in properties with a combined capital value of more than $2 million.

On behalf of the Commissioner, lawyer David Johnston has also applied to have a term deposit frozen. The amount of the deposit is not known but Radio New Zealand understands it is more than $1 million.

It is unclear whether or not the 7500 investors who are owed $167 million as a result of the company's failure will see any of the cash.

Lawyers for related parties are opposing the applications and the matter will be back in the High Court in Auckland in six months.