A man who defrauded more than 900 South Island investors of more than $8 million in a Ponzi scheme has become the first person to be permanently banned from being involved in managing a company.
Christchurch Justice and Emergency Services Precinct, which houses the High Court. Photo: Supplied / Minister of Justice
The High Court in Christchurch has ordered the ban for Lance Jared Ryan, while his co-defendant in an earlier case, David Blake, has been banned from management for 12 years.
Ryan was sentenced last year to seven years and six months in prison over the Ponzi scheme, operating under the name Arena Capital Ltd.
He and Blake, both undischarged bankrupts, also set up the Hygiene Foundation, which went into liquidation in 2013 owing more than $700,000 to creditors.
Registrar of Companies Ross van der Schyff said the prohibitions sent a strong message the registrar would take action where there was serious and repeated misconduct.
He said he's considering other cases where long prohibitions may be warranted.
