Belgrave Finance's former legal adviser knew he was acting unlawfully when he allegedly conspired with a former property developer to help hide the man's links to the now failed firm, the Crown argued this morning.
Former Central Hawkes Bay mayor and Waipukurau lawyer, Hugh Edward Staples Hamilton, is on trial in the High Court at Auckland for allegedly helping former property developer Raymond Schofield arrange the purchase Belgrave Finance so that his identity and control of the company was hidden.
The purpose of this was to allegedly allow Schofield, who bought Belgrave in 2005 for $3 million, to borrow from the firm either directly or through other companies he controlled.
Over a two-year period after the purchase, Belgrave allegedly loaned $18 million to Schofield or entities controlled by him. Of this amount, Hamilton allegedly assisted on related-party loans worth $12.6 million, preparing documents and advising Belgrave on "these unlawful advances".
Because Hamilton was instrumental in helping with the transactions and knew they breached Belgrave's trust deed, he was liable for charges of theft by a person in a special relationship, Crown lawyer Nick Williams argued yesterday in his opening statements to the court.