A transaction worth more than $100 million between Bridgecorp and a group allegedly acting as its "piggybank" did not have proper approval, lacked supporting documents and was at odds with the failed finance company's own rules, a new witness has told the High Court.
The trial of three former Bridgecorp directors - Rod Petricevic, Rob Roest and Peter Steigrad - continued in Auckland yesterday, with the finance company's credit risk manager Wayne Hawkes giving testimony.
The directors are accused of misleading investors and face 10 Securities Act charges. 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.
Financial Markets Authority lawyer Brian Dickey quizzed Hawkes over the "Barcroft transaction" - a focus in the Crown case against the trio.
The transaction involved the sale of loans from Bridgecorp to Barcroft Holdings Ltd on June 30, 2006.