Bridgecorp trial wraps up for the year

Former Bridgecorp directors Rod Petricevic (right) and Robert Roest. Photo / Dean Purcell.

The trial of three Bridgecorp directors accused of misleading investors has wrapped up for the year after a brief session of evidence this morning.

The Financial Markets Authority accuses former company directors Rod Petricevic, Rob Roest and Peter Steigrad of making untrue statements in the offer documents of Bridgecorp and Bridgecorp Investments.

The accused, who each face 10 Securities Act charges, deny the allegations. Bridgecorp collapsed in July 2007 owing 14,500 investors around $490 million.

Petricevic and Roest also face eight charges under the Crimes Act and Companies Act of knowingly making false statements in offer documents that Bridgecorp had never missed interest payments or repayments of principal to investors.

Former Bridgecorp treasurer John Welch took the stand as Crown witness this morning for less than an hour to finish giving evidence.

Yesterday he told the court that times were so tight leading up to Bridgecorp's collapse that he checked company finances up to nine times a day.

Today, he discussed the loans Bridgecorp sold to other finance companies. These loans were examined by the court in more detail last month.

According to documents tabled in court, Bridgecorp gained around $40 million from refinancing of loans between June 2006 and July 2007.

Welch said this was required to get money for investor payments.

"I guess at that stage we [were not] getting a lot of new monies because of the market situation...it was really to ensure the company was able to meet its obligations," he said.

The morning session concluded proceedings for the year.

Crown and defence lawyers will meet next Thursday to discuss some housekeeping matters but the trial not will resume until January 23.

It was adjourned early for the year after Steigrad's lawyer, Brian Keene QC, fell ill and was hospitalised.

When the case returns to court in 2012, the Crown will continue giving evidence for another fortnight.

The defence will then present its case, which is expected to take until March.