The picture Bridgecorp painted for investors about aspects of its financial position was "materially misleading", the High Court heard this afternoon.

The trial of three former Bridgecorp directors - Rod Petricevic, Rob Roest and Peter Steigrad - continues in Auckland today with forensic accountant David Crichton appearing as expert witness for the Crown.

Crichton said practices at Bridgecorp in October 2006 - when accounts were being checked hourly and reported daily - indicated "crisis management in a desperate cashflow situation".

The fact Bridgecorp obtained special answers on investor funds (allowing the company to access the money sooner) was "at odds with the representation made in the prospectus regarding good cash flow management", he said.

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The three directors on trial face 10 Securities Act charges and are accused of misleading investors in Bridgecorp prospectuses dated 21 December 2006.

Although the prospectuses the company issued included positive statements regarding the company's cashflow management and liquidity profile, Crichton said this was not a "true reflection" of the firm's state of affairs.

Bridgecorp's liquidity profile, as at 30 June 2006, was included with financial statements and formed part of the offer documents to investors.

The profile predicted the Bridgecorp group would collect $482,275,000 over the next six months, but actual collections turned out to be $95,255,000.

"As at the date of prospectus the liquidity profile presented in financial statements was not a true reflection of the company's liquidity profile because what had been predicted had not happened," Crichton said.

"By December 2006 it was known that that particular liquidity profile did not eventuate, that several loans had entered into default and that the timing of repayment of others had significantly altered. In this respect the inclusion of that liquidity profile within those accounts were materially misleading in the absence of any other disclosure qualifying its use," he said.

The trial continues in the High Court this afternoon.

As well as the Securities Act counts, Petricevic and Roest face an additional eight charges of knowingly making false statements in offer documents that Bridgecorp had never missed interest payments to investors, or repayments of principal.

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The three on trial deny all the charges against them.

Former Bridgecorp director Gary Urwin originally pleaded not guilty and appeared in court with Petricevic, Roest and Steigrad.

But he changed his plea in November last year and is awaiting sentencing in April.

The charges carry a maximum penalty of five years in jail or a fine of up to $300,000.

Former Bridgecorp chairman Bruce Davidson was sentenced to nine months' home detention in October after he changed his plea to guilty.

He was also ordered to pay reparations of $500,000 and perform 200 hours' community work.