The High Court in Auckland has heard how a finance company misused investors' money and was involved in a cover-up after the purchase of a problematic luxury apartment development from the sports star Matthew Ridge.
The former director of sister finance companies Dominion and North South Finance, Robert Whale, is charged with theft by a person in a special relationship, as is the former chief executive of Dominion Finance, Paul Cropp, and another person whose name is suppressed.
Another former director, Terence Butler, is charged but not standing trial because of illness.
Crown prosecutor Brian Dickey told the court Mr Whale and Mr Cropp misreported transactions in relation to a loan from Dominion Finance for the development in Remuera, the sale of which breached the company's trust deed.
The Crown says they participated in unauthorised lending of more than $10 million.
When the two firms and its parent company Dominion Finance Group were placed in receivership in 2008, 6000 investors were owed $400 million.
