Damp Squib as FMA file civil action against Hanover directors

Cactus Kate

Cactus Kate isn’t impressed with the limp dick response of the Financial Markets Authority:

The latest in this regulatory debacle appears to be that charges have been laid, on Friday 30th March, a day before accounting year end against six directors totalling a mere $35 million or $5.8 million each. The closest Sean Hughes and his clowns at the FMA could have got to April Fools Day.

$35 million – less than the alleged $40 million cost of the Hotchin house that has become a symbol of the Hanover case. Hughes believes that this prospectus based civil prosecution is the strongest they have.

Once again I ask – how many of those investors even bothered to read the prospectus? Such is the silliness of charges based on a document that most Mum and Dad investors would not have even opened. For example Richard Long was not named as a promoter which is interesting. More Mum and Dad investors would have put their money in based on his recommendation than the prospectus documents. I would be looking to put each investor, or a random cross section on the stand and ask them precisely why they invested in Hanover and then analyze their knowledge of the actual prospectus they allegedly relied on that resulted in that loss.

April Fools Day fell on a Sunday this year. Therefore denying us this complete fairytale ending. Although not quite, the FMA seem to have confirmed the charges on April Fools Day with Sean Hughes appearing on television prior to midday to swing his now rather shriveled excalibur.

Basically it appears that the FMA civil action hangs on a few misplaced commas and poor grammar in just a few sentences:

But what he has achieved here after talking up a game really is the equivalent of a parking fine. Fraud and jail to begin with, now a technical prospectus civil prosecution.

We also have a regulatory authority that appears on television to announce charges to the public after the past six months getting the public used to the simple fact they could not pin a $500 million criminal fraud on Hanover. The magic number being chucked around with all sorts of dirty allegations about Mark Hotchin and Eric Watson.

Mark Hotchin just one of the six directors, suffered 15 months of asset freeze on what seems to be just the trust’s Paritai Dr property left.

Investigations have been ongoing for three whole years to get us to this point.

There will be no criminal prosecution from the FMA. Hughes made this comment today.

I explained to the public back in December that we did not think that this case merited a criminal prosecution. That was certainly the advice that we received, and were comfortable with that outcome.

If you were a woman in a bar and Sean Hughes picked you up promising this much and on return to his home he whipped this out, you’d laugh, run outside and call for a cab home.

Heh, spanked like only Cactus can spank.

 


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  • Boss Hogg

    My legal knowledge extends to hiring lawyers once I am in the shit or very close to it.  Hopefully someone with knowledge can explain.

    What I do not get is why the FMA would get involved in anything other than criminal matters.  A civil case should be taken by civilians  – not cops, surely.  A class action civil case by a group of affected investors would be how I thought it would have to go.  They invested, lost and now want to claim – thier job, not the taxpayer.  If criminal activity gets exposed in the process then call the cops.

    Criminal – yep, tax money – go for it.  Civil – no. 

    Also – three years of investigation at what cost?  Shut the FMA down, kick them out and give more money to the police – lots more.

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