The Auckland High Court sentenced Lawyer Hugh Edward Staples Hamilton (63), to a prison term of four years and nine months on July 4, 2014 in relation to the collapse of Belgrave Finance Limited (Belgrave).
In May this year, the Court found him guilty of fraud charges in a joint prosecution by the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA).
The charges related to loans, valued more than $12 million made by Belgrave to various related entities between June 2005 and March 2008.
Mr Hamilton, a former barrister and solicitor was a legal adviser to the other Directors Raymond Tasman Schofield, Stephen Charles Smith and Shane Joseph Buckley, who were charged for substantive fraudulent representations and use of Belgrave investors’ funds.
Mr Hamilton was found guilty as a party to the offending, namely, theft by a person in a special relationship. He aided Mr Schofield, Mr Smith and Mr Buckley in perpetrating the related party transactions in breach of Belgrave’s Debenture Trust Deed. He also transacted a portion of the loan funds through his firm’s trust account on behalf of Mr Schofield.
Mr Buckley and Mr Smith also pleaded guilty, and were sentenced respectively to three years and four years’ imprisonment. Mr Schofield was also charged but was granted a stay of prosecution on the grounds of terminal illness, conditional upon review.
The background
Incorporated in September 2000, Belgrave provided financial accommodation and mortgage facilities for commercial and residential property developments.
Funds for lending were sourced primarily from issue of securities to the public in the form of debenture stock and convertible capital notes.
The Company was placed into receivership on May 28, 2008 owing around $22 million to approximately 1200 investors. It was placed into liquidation in April 2010.
Following the collapse of Belgrave, the (then) Securities Commission made initial investigations before referring the matter to the SFO in June 2010. The SFO determined that an investigation into the affairs of Belgrave may disclose serious or complex fraud,
Twentieth collapse
SFO Chief Executive Julie Read said, “At the time Belgrave was placed into liquidation, it was the 20th finance company to collapse in two years. The SFO has been acutely aware that finance company collapses hindered public confidence in the integrity of New Zealand’s financial markets. The sentencing of Mr Hamilton concludes another prosecution and is one step closer to addressing and rebuilding that confidence.”
FMA Director of Enforcement and Investigations, Belinda Moffat, added, “The sentence reflects the seriousness of the offending in the Belgrave case. Professional advisers play a critical role in companies that raise money from the public, and they have a responsibility to ensure they do not enable wrongdoing. We hope this decision and the conclusion of the case will help to promote high standards of conduct in New Zealand’s financial markets.”
Source: The Serious Fraud Office
