Capital + Merchant guilty pleas

Douglas pleaded guilty to one charge of making an untrue statement in a registered prospectus and one charge of distributing an advertisement which included an untrue statement.

Nicholls pleaded guilty to two charges of making an untrue statement in a registered prospectus and one charge of distributing advertisements which included an untrue statement.

A sentencing date has not yet been set.  Both men are currently serving a sentence of seven and a half years’ imprisonment after they were found guilty of fraud charges in a prosecution taken by the SFO. 

Capital + Merchant Finance (in receivership and liquidation) owed $167.1 million to about 7500 investors when it was placed in receivership in November 2007.