Five Star directors to be prosecuted

"The charges relate to false and misleading statements contained in investment statements and the 20 September 2006 registered prospectus" Registrar of Companies Neville Harris says.

The prosecution is being carried out by the National Enforcement Unit of the Companies Office.

The defendants are due to appear in the Auckland District Court on November 30.

The directors of Five Star Consumer Finance Limited (in receivership) are charged under Section 58 of the Securities Act and Section 41 of the Financial Reporting Act for making misstatements in an advertisement or registered prospectus and for making false statements (including in the company's financial accounts). These charges relate to Five Star's commercial practices, their engagement in commercial loans, and their disclosure of related party transactions.