The Serious Fraud Office has closed its investigation into two of the now bankrupt Christchurch property developer David Henderson’s companies saying it finds no basis for further investigation.

Both companies, Property Ventures Ltd. and Cashel Ventures Ltd., were associated with developing the Hotel So in Christchurch and Henderson was the sole director of both.

Property Ventures went into receivership in May last year while Cashel Ventures went into liquidation in December.

In May, SFO director Adam Feeley said his organisation had started to investigate allegations the two companies may have made misrepresentations to South Canterbury Finance and Dominion Finance Group, both of which are in receivership, in order to secure funding.

Today, Feeley said while the SFO was satisfied the complaint it received was made in good faith and there was sufficient evidence to initiate an inquiry, there was not material evidence beyond the initial information to take the matter further.

“The SFO recognises the importance of every investigation coming to a timely conclusion. Where the initial evidence is not supported by further inquiries, the interests of justice demand that we do not prolong an investigation to the unreasonable detriment of any person,” Feeley said.

Feeley said the SFO had commissioned an independent report from Barry Jordan, a Deloitte partner.

“Mr Jordan’s report identified that, although there were discrepancies between financial information provided to the companies funding the Hotel So project and the final funding arrangements which actually occurred, there was no evidence of criminality in this,” Feeley said.

“The evidence also did not indicate that the lenders were induced to make loans on the basis of any incorrect information.”

Henderson, not the same person as Auckland developer David Henderson, who was also involved in the Five Mile Holdings development in Queenstown, was declared bankrupt for a second time last November.

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