New Zealand Law Society - False statement results in home detention for director

False statement results in home detention for director

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Mark Andrew Turnock has been sentenced in the Auckland High Court to four months home detention and 200 hours of community work for making false statements as a director of SPG Investment Company No 1 Ltd in the company's financial statements.

Mr Turnock pleaded guilty in September 2015 to charges laid by the Financial Markets Authority (FMA) under the Financial Reporting Act 1993.

Fellow director and financial adviser Andrew Hrothgar Robinson was sentenced in October 2015 to 12 months' imprisonment after pleading guilty to making the same false statements as Mr Turnock. 

Mr Robinson also pleaded guilty to providing a broking service without being registered and making a false statement for the purpose of obtaining AFA status.

The FMA says the proceedings arose due to false statements made in the company's 2008 and 2009 financial statements.

The false statement was "There were no related party transactions during the year under review".

The FMA says this statement was materially false because the company had entered into related party loans with Heka Developments Ltd, a company of which Mr Turnock was the sole director and a joint shareholder of. The loans to Heka totalled $600,000 and made up more than 50% of the company's share capital.

Mr Turnock is now subject to a management ban which will prevent him from being a director or promoter, or having any role in the management of a company based in New Zealand for a period of five years from the date of his conviction.