Court hears of massive loans on the eve of insolvency
The trial is on for the former director of collapsed stockbroking firm Opes Prime, Julian Smith has pleaded not guilty to accusations of dishonest actions.
In trail proceedings this week the Victorian Supreme Court has heard Mr Smith took out a multi-million dollar loan from the ANZ bank just days before the company folded.
Prosecutors allege Julian Smith borrowed $95 million to help bail out another embattled company; Leverage Capital, of which Smith was also a director. They will also argue Mr Smith, along with two other members of the board knew the loan would place a massive financial burden on Opes Prime.
The directors of Opes Prime voted to make the company insolvent in March 2008, leaving it owing $680 million, just three days after Mr Smith secured his loan.
The trial of Julian Smith continues next week.