Tuesday, October 19, 2010

Serious Fraud Office investigates Southern Canterbury Finance

The Serious Fraud Office is investigating South Canterbury Finance (SCF) for allegedly not disclosing tens of millions in loans while it was covered by the Crown Guarantee Scheme.

Chief executive Adam Feeley said the SFO has grounds to suspect SCF failed to disclose to investors, and later the Government, at least four significant loans to related parties.

SCF allegedly funnelled tens of millions of dollars of investors’ money out of the company to related parties.

Some of these suspect transaction took place while SCF was covered by Crown Guarantee Scheme and could have affected its acceptance, Feeley said.

Rest of article by Ben Heather at Stuff News dated 19 Oct 2010.