(22 March 2010 – New Zealand) The Serious Fraud Office has been notified by the receivers of the failed finance company Capital + Merchant Finance of documents pertaining to transactions that may have benefited ‘certain related parties’.The chief executive officer of the Serious Fraud Office, Adam Feeley, said that they are investigating the use of Capital + Merchant Finance funds in contrived structures, and with questionable supporting documentation.
Capital + Merchant failed in 2007, owing NZ$165 million (A$128 million) to over 7,000 investors.
While the investigation is in its early stages, the immediate focus of the SFO’s work is to gather, analyse and evaluate all the relevant documentation around these transactions to form a view as quickly as reasonably possible as to the merits of these matters, Mr Feeley added.
The SFO is liaising with the receivers, Grant Thorton, and is receiving excellent cooperation; the SFO will also be collaborating with other regulatory agencies as appropriate, Mr Feeley noted.