Rockforte Finance Limited carried out a business of providing financial and lending services from its office in Gisborne.  The company issued debt securities to the public and used the proceeds to make loans secured mainly over imported second hand motor vehicles.    Rockforte was a participant in the Crown Retail Deposit Guarantee Scheme.  The company ceased taking in new funds in 2009, and receivers were appointed in May 2010.  According to the Receivers’ first report, at the time of receivership 77 investors were owed $3,250,000.  The majority of investors were covered by the Crown Guarantee Scheme.

After considering information obtained by SFO from the receiver of the company, the Director determined that there were reasonable grounds to believe that an offence involving serious or complex fraud may have been committed.  An investigation under Part II of the Serious Fraud Office Act was commenced on 6 December 2010.

The Investigation into Rockforte Finance Limited (Rockforte) has been completed. On 26 January 2012 a total of 92 criminal charges were laid against the three directors of the company. Nigel Brent O'Leary and Colin Mark Simpson each face 34 charges, and John Patrick Gardner faces 24 charges under the Crimes Act. The alleged offences include theft by a person in a special relationship, false accounting, obtaining by deception, and false statement by promoter. The charges carry maximum sentences of between seven and 10 years imprisonment.

Rockforte was established in 2003 as a provider of consumer and commercial financial services. The majority of its investors were from the Poverty Bay region. It operated under a trust deed that prohibited it from using investors' funds to make loans to related parties in excess of 2% of its total tangible assets without the consent of the trustees. The SFO allege that the directors allowed a significant portion of investors' money to be used as a source of funding for their personal business interests in two companies - Gisborne Haulage and Michael Ward 1969 Ltd, which operated the Jean Jones label throughout New Zealand.

The Ministry of Economic Development's National Enforcement Unit and the Financial Markets Authority also provided support and assistance to the SFO on this case.

All three defendants were remanded on bail to appear in the Gisborne District Court on 2 May 2012. At this stage of the prosecution process the SFO has to file formal written statements with the Court by 30 April 2012 to have the defendants committed for trial.

The SFO has now commenced interviews with witnesses and investors involved in the Rockforte case.

SFO has commenced its investigation and is working closely with the Securities Commission to progress the investigation.

The case manager for this case is Willie Harris.  If you have questions regarding your personal involvement with this case or information that may assist the investigation, he can be contacted on willie.harris@sfo.co.nz or 0800 109 800. 

For media enquiries call 027 705 4550