While
not directly involved in management of failed finance company Belgrave Finance,
Hawkes Bay lawyer Hugh Edward Staples Hamilton received a longer jail sentence
at four years and nine months imprisonment than two Belgrave directors also
convicted of fraud related offences.
Hamilton was convicted
in May 2014 on fourteen charges of being party to theft by a person in a
special relationship. This followed
legal advice and assistance provided to a Mr Raymond Schofield who acted behind
the scenes at Belgrave Finance extracting funds for his own personal business
ventures in breach of related party lending rules in Belgrave’s debenture trust
deed.
The 1200 investors in
Belgrave Finance, most retired and on fixed incomes, have received just under
ten cents in the dollar since Belgrave went into receivership in May 2008. Estimates of the amounts lost in lending to
Schofield range from $12.5 million to $14.4 million.
The High Court was
told Schofield was a valuable client for Hamilton. He provided legal assistance for Schofield’s
plans from 2005 to buy into Belgrave Finance while hiding his involvement in
the company. Hamilton set up a “clean”
trust for Schofield, with Schofield’s mother-in-law as the settlor and named beneficiaries
being the husband of each of her children – which would include Schofield. Through this trust, an intermediary company,
and compliant directors of Belgrave, Schofield controlled Belgrave Finance. Hamilton, while notionally acting as legal
adviser to Belgrave Finance, treated Schofield as his primary client. Hamilton was convicted for his role in helping
Schofield milk funds from Belgrave Finance.
Through his law firm, Hamilton prepared documentation for Schofield
loans, backdating some documents at Schofield’s request and processed loan
advances through his firm’s trust account.
Justice Faire said one of the aggravating features of Hamilton’s
offending was the fact it arose through his role as a lawyer.
Hamilton was sentenced
to four years nine months imprisonment.
Belgrave directors Shane Buckley and Stephen Smith were earlier
sentenced to three years and four years imprisonment respectively.
R.
v. Hamilton – High Court (04.07.14)
14.030