6 Oct 2010

All Five Star directors admit Securities Act charges

1:34 pm on 6 October 2010

All the former directors in failed finance firm Five Star Group have now pleaded guilty to breaching the Securities Act and Financial Reporting Act.

Five Star Consumer Finance collapsed in 2007, owing $54 million to about 2300 secured debenture holders, while Five Star Finance and Five Star Debenture Nominee were later placed in liquidation.

Marcus MacDonald, Anthony Bowden, Nicolas Kirk and Neil Williams were all charged with raising money without a prospectus or investment statement, and without using a trustee.

Bowden and Kirk pleaded guilty last month, and MacDonald and Williams did so on Tuesday.

All of them were banned from running companies for five years last year.

The men still face Serious Fraud Office charges.

Some $12 million has been recovered from Five Star Consumer Finance.