27 Jan 2012

FMA says Ludlow jail term sends deterrent message

12:51 pm on 27 January 2012

The Financial Markets Authority says the prison sentence of six years and four months given to the former director of National Finance is the longest of its kind in recent years.

Trevor Allan Ludlow was already in serving a lengthy sentence for defrauding investors of about $3.5 million following an investigation by the Serious Fraud Office.

At the High Court at Auckland on Thursday he was sentenced to an extra nine months jail, having earlier pleaded guilty to separate charges brought by the Financial Markets Authority (FMA).

FMA chief executive Sean Hughes says it is the longest jail term arising from a raft of investigations into failed finance companies, and the penalty is a deterrent message.

"I would say to those out there in the market who think that they might be able to get away with similar misbehaviour - don't be tempted. At the end of the day you are breaching the trust of your customers and your investors and we will find you", he warned.

Ludlow's former associates Carol Braithwaite and Anthony Banbrook have pleaded not guilty to the charges. Their case is expected to be heard in July.

More than 2000 investors lost $14 million when National Finance collapsed in 2006.