A former Bridgecorp manager said there were issues with how the failed finance firm recorded items in its accounts, including a $40 million loan advanced to an alleged related party developing properties in Fiji.
Three Bridgecorp bosses -Rod Petricevic, Rob Roest, and Peter Steigrad - each face 10 Securities Act charges brought by the Financial Markets Authority (FMA) for allegedly making untrue statements in the investment statements, registered prospectuses and extension certificates of Bridgecorp and Bridgecorp Investments.
Their trial is continuing in the High Court at Auckland this morning.
The trio's fellow directors - Gary Urwin and Bruce Davidson - have pleaded guilty to the charges.
Crown witness Indra Kumar, who was Bridgecorp's risk and audit manager, took the stand this morning and was questioned about documents he prepared shortly after Bridgecorp collapsed in July 2007, owing 14,500 investors $459 million.