Illness closes Bridgecorp trial early for year

Rod Petricevic is facing charges under the Securities Act, Crimes Act and Companies Act. Photo / Paul Estcourt

The trial of three former Bridgecorp directors has been plagued by another delay and will now close early for the year.

Bridgecorp bosses Rod Petricevic, Rob Roest and Peter Steigrad are accused of misleading investors and each face 10 Securities Act charges of making untrue statements in the offer documents of Bridgecorp and Bridgecorp Investments.

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.

Bridgecorp collapsed in July 2007 owing $459 million to 14,500 investors.

The trio deny the charges against them in a case brought by the Financial Markets Authority.

Their trial in the High Court at Auckland began in October but will wrap up early for the year after Steigrad's counsel, Brian Keene, QC, had to go to hospital.

The Herald was told yesterday Keene's condition was "not great" but that he is expected to recover.

Two more Bridgecorp employees will appear as Crown witnesses from Tuesday next week and the trial will then be adjourned until January 23.

The start of the trial was delayed four times this year through issues of legal representation or applications for legal aid.

Since it kicked off, one witness has alleged Petricevic and Roest had discussed Bridgecorp missing interest payments in company meetings.

The court has also heard of a $90 million transaction between Bridgecorp and Barcroft Holdings.

Barcroft allegedly had covert ties with Bridgecorp director Gary Urwin through trusts, and through parent company BHL, a company which Bridgecorp exercised considerable control over.

Despite the alleged link, Barcroft was listed as an unrelated company in the Bridgecorp prospectus distributed to investors after December 21, 2006.

Urwin originally pleaded not guilty to Securities Act charges, but changed his plea last month and is awaiting sentence.

His lawyer, David Reece, asked for a home detention report to be prepared, but FMA prosector Brian Dickey said the Crown was seeking jail.