FMA drops case against Bridgecorp

The Financial Markets Authority (FMA) has consented to an $18.9 million settlement between the receiver of Bridgecorp, the Bridgecorp directors, and their liability insurers. FMA has agreed to end its own civil proceedings against the Bridgecorp directors once the settlement sum has been paid.

FMA says the settlement represents the best outcome for Bridgecorp investors in the circumstances, and will ensure that investors receive the funds in a timely way.      

Bridgecorp Ltd and Bridgecorp Investments Ltd were placed in receivership in July 2007 with approximately $459 million owing to 14,500 investors. Two of its former directors, Rodney Petricevic and Robert Roest, are each serving over six years imprisonment following successful prosecutions taken by FMA.

FMA Head of Enforcement, Belinda Moffat, said the decision to discontinue its civil proceedings against the Bridgecorp directors was not taken lightly.