Former National Finance Director convicted following SFO investigation

Trevor Allan Ludlow (52), the former director of National Finance 2000 Limited (National Finance), has been convicted in the Auckland District Court of seven charges relating to theft by a person in a special relationship and false accounting, following an investigation by the Serious Fraud Office (SFO).

Mr Ludlow was charged under sections 220 and 260 of the Crimes Act. He had earlier pleaded guilty to one count of theft, and was found guilty of the remaining six charges by Judge Bouchier last night.

Mr Ludlow, who represented himself throughout the trial, was found to have breached the terms of the Trust Deed under which National Finance operated, defrauding investors of an estimated $3.5 million. This included approximately $2.7 million of unauthorised or unsecured advances made to his Payless Car group of companies; as well as undisclosed related party transactions totalling over $800,000 to an audio company; a property in Fiji; and land purchased for another company he owned.

SFO Acting Director, Simon McArley, said Trust Deeds play an essential role in regulating the finance industry and that apparent breaches of these requirements was a common element across a number of companies being investigated by the SFO.

"This is a positive conclusion to what has been a complex investigation. The SFO is committed to rebuilding investor confidence in New Zealand's finance industry and this result demonstrates that those guilty of misapplying investor funds will be held to account," he said.

In November 2010, John Gray (42), the former accountant for National Finance, pleaded guilty to theft by a person in a special relationship and one charge of false accounting. Mr Gray was sentenced to a term of 18 months imprisonment, later reduced after an appeal to nine months home detention.

Mr Ludlow is expected to next appear in court on 12th August.

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