Former SCF boss regrets mistakes
Former Timaru accountant Nigel Gormack has been deregistered by the New Zealand Institute of Chartered Accountants (NZICA) after he was found guilty of misconduct in a professional capacity.
Gormack, who briefly headed South Canterbury Finance, appealed the penalty imposed as a result of November’s hearing but, in a decision released yesterday, the appeals council confirmed the decision stands.
Gormack’s name will be permanently removed from the institute’s register.
He has been ordered to pay the full costs of his appeal and $62,495 towards legal costs incurred by the institute for the disciplinary tribunal hearing.
In a statement released yesterday afternoon, Gormack, a partner at Quantum Advantage in Timaru, said he was ‘‘truly sorry to anyone who feels that I hurt them in any way throughout this’’. He would not relitigate the result.
‘‘The two complex transactions back in 2010 that led to this arduous process for me and my family were described by my Queen’s Counsel as rescue packages that were ultimately successful for the shareholders. But I did get things wrong and I will always regret those mistakes.’’
The council noted Gormack ‘‘somewhat belatedly’’ admitted the particulars of all charges against him, and had admitted his conduct was unbecoming of an accountant and had breached the institute’s code of ethics.
Gormack withdrew his appeal as to the misconduct decision on the first day of the November appeal hearing, but pressed ahead with his appeal of the penalty.
The council said it had no hesitation in agreeing with the disciplinary tribunal. Suspension was not appropriate because he had ‘‘shown little indication that he understands the seriousness of his conduct or the degree to which that conduct has fallen below the standards expected’’.
‘‘On the evidence before us we are not satisfied that Mr Gormack is capable of being rehabilitated.’’
The charges related to two Timaru investments by clients in which Gormack was also interested as an investor: a Supercheap Auto complex and what was described as a land-banking opportunity at Washdyke.
The complaints included allegations – which Gormack did not challenge – that he had failed to inform investors when he sold out of his own investments, did not offer a promised pre-emptive right to buy out fellow shareholders and misled them about a major refinancing and settlement.
The tribunal heard how Evans Street Commercial shareholders Steve Turnbull and Mark Morgan were concerned about the settlement of a loan to South Canterbury Finance receivers arranged by then-fellow company directors Gormack and Richie Smith.
Gormack was not available yesterday to discuss the detail of the decision, but in a statement said: ‘‘To appeal the most serious charge meant that I had to appeal the whole decision.’’
Gormack said he would comply with the orders and continue to contribute to his community, which was ‘‘the best way I can show my regret and make up for the mistakes I made’’.