4 Sep 2014

Belgrave receivers to be paid $8.6m

6:33 pm on 4 September 2014

The director of a failed finance company and the man described by a judge as pulling the strings have been ordered to pay the company's receivers $8.6 million.

At the High Court in Auckland today, Justice Fogarty granted an application by the receivers of Belgrave Finance, which went into receivership in 2008 owing investors $22 million.

A lawyer for the receivers, Michael Arthur, told the court that a director, Shane Buckley, had failed in his duties to the company and had been helped by the man who effectively owned it, Raymond Schofield.

Mr Arthur said the receivers could prove that Belgrave had lost $8.6 million in related-party lending to entities attached to Mr Schofield, which was in breach of company rules.

He also asked for an order to force Buckley and Mr Schofield to pay compound interest of $6.2 million.

Justice Fogarty said the $8.6 million should be paid, but reserved his decision on the compound interest.

Buckley pleaded guilty to 23 charges and was jailed in 2012 for three years. Raymond Schofield escaped prosecution because he has a terminal illness.