Former Justice Ministers prosecuted over Lombard offer documents
Former Justice Minister and Attorney-General Doug Graham has been charged by the Securities Commission, which he once oversaw, in civil proceedings relating to failed finance company Lombard Finance & Investments (LFI).
Bill Jeffries, also a former Justice Minister, and two other Lombard directors, Michael Reeves and Lawrence Bryant all face prosecution.
"The commission alleges that Lombard Finance & Investments' offer documents misled investors by misrepresenting the investment risks, especially in relation to liquidity, the quality of the loan book, adherence to credit policies, and the company's overall financial position," said chair Jane Diplock in a statement.
The regulator claims the directors made false statements in a prospectus dated September 7, 2007 and investments statements dated December 28, 2007. It also alleges that a DVD advertisement distributed in 2007 and 2008 repeated similar untrue claims about the company's financial position.
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