SFO closes investigation into Property Ventures Ltd

24 June 2011

The Serious Fraud Office (SFO) today announced that it was closing its investigation into Property Ventures Limited (PVL) and Cashel Ventures Limited (CVL) following allegations of financial misrepresentation, finding no basis for further investigation.

PVL was placed in receivership in March 2010 and CVL was placed in liquidation in December 2010. Both companies were associated with the development of Hotel So in Christchurch.

The SFO commenced its investigation into the matter on 23 May 2011.

SFO Chief Executive, Adam Feeley, said that the investigation had been commenced under Part 1 of the Serious Fraud Office Act to determine whether fraud may have been committed.

While the SFO was satisfied that the complaint was made in good faith and there was sufficient evidence to initiate an inquiry, there was no material evidence beyond the initial information to take the matter further.

“The SFO is recognises the importance of every investigation coming to a timely conclusion. Where the initial evidence is not supported by further inquiries, the interests of justice demand that we do not prolong an investigation to the unreasonable detriment of any person.”

Mr Feeley said that its inquiries had included commissioning an independent report from Barry Jordan, a Partner (Recovery and Forensics) at Deloitte to advise whether the financial information disclosed warranted further investigation.

“Mr Jordan’s report identifies that, although there were discrepancies between financial information provided to the companies funding the Hotel So project and the final funding arrangements which actually occurred, there was no evidence of any criminality in this. The evidence also did not indicate that the lenders were induced to make loans on the basis of any incorrect information.”

The SFO said that it had received full cooperation from all parties to the investigation which had enabled a speedy resolution of the matter.

ENDS

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