Ex-lawyer had 'no reason' to act as accused

Hugh Hamilton. Photo / Sarah Ivey

A now-disbarred lawyer who allegedly helped a property developer borrow millions of dollars from a finance company in "forbidden related-party loans" had no reason to do the things he's accused of, the defence said in its closing arguments.

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 of Belgrave Finance so that Schofield's identity and control of the company was hidden.

The purpose was to allegedly allow Schofield, who bought Belgrave in 2005 for $3 million, to borrow from the firm.

A former partner of DAC Legal who advised Belgrave until its 2008 receivership, Hamilton has pleaded not guilty to 17 charges of theft by a person in a special relationship as well as charges of false statement by a promoter, and Companies Act charges of making a false statement to a trustee.

Defence lawyer David Young began his closing submissions to Justice John Faire yesterday and said there was no evidence that Hamilton had a motive for the alleged offending.

"He has no reason to do the things he's accused of," Young said.

While the Crown has alleged Schofield acted as Belgrave's "shadow director" and was in control of the finance firm, Young disputed this.

Even if Schofield was a shadow director, Hamilton did not know this to be the case, Young said.

Hamilton's lawyer denied his client had formed a common intention with Schofield and Belgrave directors Stephen Smith and Shane Buckley for the alleged offending.

Buckley and Smith pleaded guilty and were jailed.

Schofield was granted a stay on the proceedings because he was suffering from terminal cancer.