Media Statement - John Hotchin

Former Nathans Finance director John Hotchin was sentenced today in the Auckland High Court after pleading guilty to three charges brought by the Securities Commission. The charges concerned statements in Nathans’ December 2006 prospectus and investment statement which the Commission said were misleading.

Mr Hotchin resigned from Nathans in March 2007, five months before the company was placed into receivership. He had been a non-executive director and was living in the United States at the time the prospectus and investment statement were prepared.

“At the time I believed that the documents were accurate”, Mr Hotchin said, “but I accept that as a director of the company I should have done more to ensure that this was the case”. Mr Hotchin added: “I am extremely sorry for the losses suffered by Nathans’ investors and would like to apologise to them.”

Mr Hotchin returned voluntarily to New Zealand to face the charges. The Judge acknowledged that Mr Hotchin was genuinely remorseful and that he had cooperated with the prosecution. The case did not involve any allegations of dishonesty.

Mr Hotchin was sentenced to 11 months home detention, 200 hours community service and to pay reparations of $200,000. “I recognise that I let Nathans’ investors down”, Mr Hotchin said, “and I accept the Court’s sentence.” “I do not wish to say anything more.”