Former Five Star directors jailed
Auckland, Dec 21 NZPA - Two directors of failed finance company Five Star have been sent to jail for more than two years for misleading investors, some of who lost millions.
Nicholas George Kirk, the company's former managing director, was sentenced to two years and eight months' prison and former director Marcus McDonald was sentenced to two years and three months in Auckland District Court today.
Both men had pleaded guilty to charges of theft by a person in a special relationship, laid by the Serious Fraud Office.
They also admitted charges of making false statements in an advertisement or registered prospectus, making false or misleading statements, and a further 36 charges relating to breaching the Securities Act.
Another Five Star director, Anthony Bowden, was this morning sentenced to nine months' home detention and 300 hours' community work.
The company's former manager, Neil Alan Williams, is also facing charges relating to misuse of funds and will have a disputed facts hearing in March.
Five Star Consumer Finance, collapsed in August 2007, owing $63 million.
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