Bridgecorp CFO guilty plea concludes SFO investigation

The former Chief Financial Controller of Bridgecorp Limited (Bridgecorp), Cornelis Robert Roest (56) has today pleaded guilty in the Auckland District Court to one Crimes Act charge and two Companies Act charges brought against him by the Serious Fraud Office (SFO). He also entered guilty pleas to charges brought by the Inland Revenue Department (IRD) relating to misapplication of PAYE deductions.

For this offending Mr Roest received an uplift of three months on his existing sentence of imprisonment of six and a half years, imposed in May, in respect of Financial Markets Authority (FMA) convictions of various offences under the Securities Act 1978, Crimes Act 1961, and Companies Act 1993.

Mr Roest is currently appealing both his FMA conviction and sentence.

SFO’s charges related to Mr Roest’s role in the fraudulent acquisition and financing of a luxury launch, the ‘Medici’, which was purchased using Bridgecorp funds totalling $3.5 million.

SFO Chief Executive, Adam Feeley, said it was satisfying to bring another major finance company investigation to a successful conclusion.

“The public have every reason to be cautious about giving trust and confidence to a sector that caused such considerable losses. However, these and other recent convictions will hopefully help rebuild their confidence that offenders will ultimately be held to account” he said.

Bridgecorp went into receivership in July 2007 and an investigation under the Serious Fraud Office Act was commenced on 1 May 2008.

Charges under the Crimes Act were laid in May 2010 against Mr Roest and former Managing Director for Bridgecorp, Rodney Michael Petricevic (63).