The New Zealand High Court has found former CBL Insurance CEO Peter Harris and former CFO Carden Mulholland not guilty on criminal charges. 

CBL had a market valuation of just under $NZ750 million ($694 million) when it collapsed in 2018 in one of New Zealand’s largest corporate failures. 

Mr Harris faced eight charges for theft, false accounting and obtaining benefit by deception, while Mr Mulholland faced three charges. 

Justice Michael Robinson handed down his decision last Thursday in Auckland, delivering not guilty verdicts on all matters. 

Five of the charges related to statutory directions the Reserve Bank of New Zealand issued to CBL between July 25 2017 and February 21 2018, and three related to a deposit of €12.5 million ($20.7 million) that CBL placed with the National Bank of Samoa on October 15 2014. 

On an alleged “fraudulent stratagem” involving various parties and the Samoa funds, Justice Robinson says there was nothing inherently dishonest about the transactions. 

“The documents were intended to take effect according to their terms. There is no suggestion they were a sham,” he says. 

New Zealand’s Serious Fraud Office (SFO) says it’s considering the court’s decision and will continue to be active in investigating allegations of corporate fraud. 

“This was an important case for the SFO to take as the alleged conduct threatened New Zealand’s reputation as a safe place to do business and the trust placed in our institutions and business community,” SFO Director Karen Chang said. 

“As New Zealand navigates a period of economic uncertainty, it is particularly critical that we investigate allegations of serious and complex fraud that undermine confidence in our businesses, regulatory systems and financial controls.”