Business bankers: boat builder sunk by fraudulent stock claims
A boatbuilder in Christchurch, New Zealand, has been convicted of making fraudulent representations to obtain working capital, as well as a raft of other offences.
Peter Edward Hynes fled to Australia when investigations began into the finances of his collapsed boat building business.
He had borrowed NZD1.5 million from various lenders, inflating the value of his stock in hand.
But he also too substantial deposits from customers for boats he never delivered. One customer had borrowed NZD40,000 but never saw any work done.
The charges relate to 2005 and 2006 when a slump had a devastating effect on the business.
The court said in sentencing him to three years in jail that it recognised that Hynes did not steal the money to maintain a lavish lifestyle: in fact the money was all used to try to keep his company afloat in difficult times. The judge said that the financial situation at McPherson Marine Ltd "spiralled and fed on itself."
The company has been liquidated and Hynes himself has no assets. The Judge said he was "wiped out" and therefore any restitution order was pointless.
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