More Charges Pending In Lombard Finance Case

The Securities Commission says there may be more legal action against four Lombard Finance and Investments directors, including former National Party cabinet minister Sir Douglas Graham, Radio New Zealand reported. Sir Douglas and the other directors, former Labour Party cabinet minister, Bill Jeffries, Michael Reeves, and Lawrence Bryant face penalties of up to $500,000 each for allegedly misleading investors. The civil action by the Securities Commission comes two years after Lombard Finance was placed into receivership, owing $127 million to about 4400 investors. The commission claims the directors lied to investors about the company's worsening financial position in its prospectus and investment statement in 2007 and advertisements in 2008. It's seeking up to $2 million from the four men, as part compensation for investors. Read more.