14 Nov 2011

Investors' losses detailed in Bridgecorp case

9:28 pm on 14 November 2011

The grievances of 15 former Bridgecorp investors have been aired in the High Court in Auckland.

Their experiences were read out during the trial of three former Bridgecorp directors, Rod Petricevic, Rob Roest and Peter Steigrad.

They are on trial accused of misleading investors about the state of the company, which collapsed in 2007 owing more than $450 million.

Among the evidence, the court heard the story of investor John Adams, whose $50,000 investment matured on 23 June 2007, less than a fortnight before the company collapsed.

In evidence read by the court registrar, Mr Adams said the money never showed up in his account, despite daily assurances from Bridgecorp that it was coming.

Evidence from another investor, Donald Pilford, said he had no idea of Bridgecorp's financial strife when he re-invested $200,000 just days before the company went under.

Defendants deny any wrong-doing.

A lawyer for former Bridgecorp managing director Rod Petricevic says his client had no intention of misleading investors and denies any wrong-doing.

Lawyer Charles Cato told the court his client trusted his colleagues, lawyers and auditors to make sure investment prospectuses were accurate.

He said the former managing director signed the documents believing them to be true.

Mr Cato said it's of great regret to Mr Petricevic that investors suffered such a loss.

The Crown contends the directors of the company knew it was failing, but released investment documents suggesting otherwise.