R v Douglas

[2012] NZHC 1746

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CRI 2011-004-012988 [2012] NZHC 1746

THE QUEEN

v

WAYNE LESLIE DOUGLAS NEAL MEDHURST NICHOLLS OWEN FRANCIS TALLENTIRE

Hearing:         14 - 18, 21 - 25, 28 - 31 May, 6 - 8 June 2012

Counsel:         NRW Davidson QC, N Williams and M Thomas for the Crown

B Gray QC, R Sussock and G Tompkins for the Accused Douglas and
Nicholls
N Gedye, T Mullins, M Heard and S Ellis for the Accused Tallentire

Date:              19 July 2012

REASONS FOR VERDICT OF WYLIE J

Distribution:

N Davidson QC: [e-mail]
N Williams: [e-mail]
M Thomas: [e-mail]
B D Gray QC: [e-mail]

R Sussock: [e-mail] G Tompkins: [e-mail] N Gedye: [e-mail]

T Mullins: [e-mail]
M Heard: [e-mail]

S Ellis: [e-mail]

R V DOUGLAS & ORS HC AK CRI 2011-004-012988 [19 July 2012]

INDEX

Paragraph Introduction ............................................................................................................[1] Judge alone trial .....................................................................................................[6] Relevant rules of law and practice .......................................................................[11]

Overall factual setting ..........................................................................................[19] a)    Messrs Douglas and Nicholls — Capital + Merchant Finance Limited .....[20] b)    The business of Capital + Merchant Finance Limited — the Trust Deed ...[23] c)    The lending committee — the lending manager...........................................[33] d)    The background to the Numeria Transactions.............................................[39] e)    The Numeria 1 transaction ..........................................................................[56] f)     The background to the Clyde transactions...................................................[75] g)    The Clyde 1 transaction ...............................................................................[86] h)    The Clyde 2 transaction .............................................................................[103] i)     The Clyde 3 transaction .............................................................................[119] j)     Result of the Clyde transactions.................................................................[127] k)    The Numeria 2 transaction ........................................................................[130] l)     The demise of Capital + Merchant Finance Limited .................................[146]

Matters of Law Common to All Counts.............................................................[148] a)    The charges — elements of the offence ......................................................[148] b)    Previous s 220 cases ..................................................................................[151] c)    Were the trustee’s requirements met through disclosure?.........................[163] d)    The obligations of issuers and directors ....................................................[189] e)    Property — what was it?............................................................................[195] f)     Control .......................................................................................................[201] g)    The circumstances in which the property was dealt with ..........................[206] h)    The requirements of Perpetual Trust Limited ............................................[213] i)     Intention .....................................................................................................[239] j)     Reliance on others ......................................................................................[250] k)    Loan advances used to repay earlier advances .........................................[262]

Count 1 — the Numeria 1 transaction................................................................[267] a)    Did the accused have control over property? ............................................[269] b)    Did the circumstances require each of the accused, Messrs Douglas

and Nicholls, to deal with the property in accordance with the

requirements of any other person? ............................................................[285] c)    Did the accused know of those circumstances? .........................................[291] d)    Did Messrs Douglas and Nicholls intentionally deal with the property

otherwise than in accordance with those requirements? ...........................[296]

Count 2 — the Clyde 1 transaction ....................................................................[334] a)    Did the accused have control over property? ............................................[336] b)    Did the circumstances require each of the accused, Messrs Douglas,

Nicholls and Tallentire, to deal with the property in accordance with

the requirements of any other person?.......................................................[341] c)    Did the accused know of those circumstances? .........................................[345] d)    Did Messrs Douglas, Nicholls and Mr Tallentire, intentionally deal

with the property otherwise than in accordance with those
requirements?  ...........................................................................................[352]

Count 3 — the Clyde 2 transaction ....................................................................[391] a)    Did the accused have…