Belgrave Finance Limited traded as a finance company offering property loans and accepting deposits from the public.  The Company was placed into receivership on 28 May 2008 owing approximately 1000 public investors approximately $20 million.  The receivers anticipate a recovery of around 21 cents in the dollar.  Losses to the public are anticipated to be in excess of $15 million.       

After considering a referral received from the Securities Commission, the Director determined that an investigation into the affairs of Belgrave Finance may disclose serious or complex fraud.  An investigation under Part II of the Serious Fraud Office Act was commenced on 1 July 2010.

The SFO has laid 60 charges under the Crimes Act against three people associated with the collapse of Belgrave Finance Limited. The SFO alleges that the defendants misrepresented to investors how their investments in Belgrave Finance would be used, and subsequently used those funds in an unauthorised manner.

Two of the accused, former Belgrave Finance Director, Stephen Charles Smith (43), and an associate, Raymond Tasman Schofield (49), have appeared in the Auckland District Court to face charges. The accused have entered no plea and have been remanded to appear back in court on 5 October 2011. The third person will appear at a later date.

The Office's investigations are nearing completion, with a final report currently in preparation.  It is anticipated that a decision as to whether a prosecution will be undertaken in this case will be made during April 2011.

The Office is investigating a number of transactions entered into by Belgrave Finance Limited and related parties and the disclosure of those transactions and other matters in the prospectus and other promotional materials of the company.  Investigations are continuing.

If you have information you would like to discuss with the SFO, please make contact with us via the contact details below.

The case manager for this case is Willie Harris.  If you have questions regarding your personal involvement with this case or information that may assist the investigation, he can be contacted on willie.harris@sfo.govt.nz or 0800 109 800. 

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