14 Apr 2014

Trial told SCF had influence on firms

10:08 pm on 14 April 2014

The former chief financial officer of South Canterbury Finance has outlined a money trail that showed the company had 'influence' over companies it lent money to because it owned some of their assets.

David Jarman is giving evidence at the High Court in Timaru where three of the company's former directors, Lachie McLeod, Edward Sullivan and Robert White, are facing 18 charges brought by the Serious Fraud Office.

South Canterbury Finance collapsed in April 2010, owing 35,000 investors $1.7 billion.

Mr Jarman told the court on Monday that he saw financial records showing Quadrant Holdings Ltd, which owed South Canterbury Finance $49.7 million, was raising money through companies related to the Regency and Hyatt hotels on whose boards some South Canterbury Finance directors sat.

"South Canterbury Finance had a reasonable amount of influence over Quadrant because Quadrant had borrowed in excess of the value of its assets."