Investment Management and Combined Financial Services Directors Prosecuted

The Registrar of Companies has laid criminal charges in Timaru District Court against Investment Management Limited and company directors Neville Ian Cant and Rhys David Morgan.

Charges have also been laid against Combined Financial Services Limited and its director Neville Ian Cant.
The charges, under the Securities Act, relate to securities being offered and allotted to members of the public without a prospectus or an offeror’s statement. The securities were offered in relation to The Gables Proportionate Ownership Scheme.

Investment Management Limited was the issuer in relation to the offer of securities in the scheme to the public, and Combined Financial Services Limited was the promoter of the scheme.

The prosecution is being carried out by the National Enforcement Unit of the Companies Office which investigated after matters were referred to it by the Securities Commission.

The defendants will appear in the Timaru District Court on 5 August 2009.

Registrar of Companies Neville Harris said it was not appropriate to comment on the case while it is before the Court.

The Charges
Investment Management Limited faces one charge under Section 59 of the Securities Act 1978 for issuing securities without registering a prospectus or issuing an Offeror’s Statement.

Investment Management Limited faces one charge under Section 59 of the Securities Act 1978 for allotting securities in contravention of Section 37 of the Securities Act 1978.

Neville Ian Cant, as a director of Investment Management Limited, faces two charges under Section 59 Securities Act 1978 for the same offences of issuing and allotting securities as the company.

Rhys David Morgan as a director of Investment Management Limited at the relevant time faces two charges under Section 59 Securities Act 1978 for the same offences of issuing and allotting securities as the company.

Combined Financial Services Limited faces one charge under Section 59 Securities Act 1978 for promoting an offer of securities to a member of the public without a registered prospectus or offeror’s statement.

Combined Financial Services Limited faces one charge under Section 59 of the Securities Act 1978 for promoting a security that was allotted in contravention of Section 37 Securities Act 1978.

Neville Ian Cant, as a director of Combined Financial Services Limited, faces two charges under Section 59 of the Securities Act 1978 for the same offences of promoting the offer and allotment of securities as the company.

Penalties

If convicted of these offences the issuer, the promoter and the directors are liable to a fine not exceeding $300,000.