National Finance 2000 Limited, traded as a finance company, accepting deposits from the public and investing those deposits mainly in motor vehicle loans, through motor vehicle dealers including the related Payless Cars group of companies.  Trevor Allan Ludlow was the sole shareholder and a director of the company.  John Gray was employed by the company as an accountant.

National Finance was placed into receivership on 09 May 2006 owing investors approximately $21 million. 

After considering a complaint received from the Receiver, PricewaterhouseCoopers, the Director determined that an investigation into the affairs the National Finance 2000 Limited may disclose serious or complex fraud.  An investigation under Part I of the Serious Fraud Office Act was commenced on 30 June 2006.  

Having concluded its initial investigation into the affairs of National Finance 2000 Limited under part I of the Serious Fraud Act, the Director determined that there are reasonable grounds to believe an offence involving serious or complex fraud may have been committed.  An investigation under Part II of the Serious Fraud Office Act was commenced on 08 May 2007.

On 20 October, former National Finance Director Trevor Allan Ludlow (52) was sentenced in the Auckland District Court to five years, seven months years imprisonment.

Former National Finance Director, Trevor Allan Ludlow (52), has been convicted in the Auckland District Court of seven charges relating to theft by a person in a special relationship and false accounting, following an investigation by the SFO.  Mr Ludlow was charged under sections 220 and 260 of the Crimes Act.

He had earlier pleaded guilty to one count of theft, and was found guilty of the remaining six charges by Judge Bouchier.

Mr Ludlow is scheduled to next appear in court for sentencing on 20 October 2011.

Mr Ludlow’s trial has been set down for 4 July 2011 in the Auckland District Court.  Mr Ludlow has indicated he will make application to join this SFO prosecution with a prosecution undertaken by the National Enforcement Unit of the MED in relation to alleged breaches of section 58 of the Securities Act.  The next scheduled appearance is in the Auckland District Court on the 21 June 2011. 

Mr Gray’s appeal against sentence is due to be heard on the 22 March 2011.

Mr Gray was sentenced in the Auckland District Court on 26 November 2010 to imprisonment for a term of 18 months. Mr Gray has indicated that he will appeal the decision not to grant him home detention in relation to his sentence, and remains on bail pending determination of that matter.  

Mr Ludlow is yet to enter a plea in relation to the charges he faces.  His trial is set down to commence in the Auckland District Court on the 4 July.

On completion of the investigation a final investigation report was prepared for the Director.  On the basis of this report and following consultation with SFO Panel Counsel the Director decided to charge Trevor Allan Ludlow and John Gray with offences of the Crimes Act. 

Mr Ludlow and Mr Gray were both charged under section 220 of the Crimes Act.  Mr Gray was also charged under section 260. 

The accused were arrested and made their first appearance in the District Court at Auckland on the 23 October 2009.  Mr Ludlow and Mr Gray were both granted bail.

Mr Gray appeared in the Auckland District Court and pled guilty to one charge under section 260 and two charges under 220 of the Crimes Act.   Mr Gray was remanded on bail to reappear for sentence on 26 November 2010.

Mr Ludlow’s next appearance is 26 November 2010.

The investigator for this case is Joanne Pettifer.  If you have questions regarding your personal involvement with this case or information that may assist the investigation, she can be contacted on joanne.pettifer@sfo.govt.nz or 0800 109 800. 

For media enquiries call 027 705 4550