Jury told of 'illogical' case against Opes Prime director
Julian Alexander Smith is accused of duping a bank into lending him $95 million just days before Melbourne-based Opes Prime Stockbroking collapsed.
The company was declared insolvent in March 2008 owing creditors about $650 million.
Smith is alleged to have signed the loan despite knowing there was a $200 million shortfall in the company's accounts.
But defence barrister Mark Regan has told the Victorian Supreme Court that Smith's intention was to rescue his company and he did not commit a crime.
He compared the case against Smith to a ship that "leaked badly and suffers from design flaws".
Mr Regan told jurors on Monday the prosecution's theory was illogical and didn't make sense. He denied Smith deliberately misrepresented Opes Prime's position.
"On the way they put the case it is a fundamental suicidal act both for the company and his own wealth," he said.
Mr Regan said the operation of Opes Prime was a legitimate business and the fact a company had collapsed did not mean anything criminal had happened.
"We say there is something fundamentally wrong with their case theory," he said.
When examining the events, jurors should remove the benefit of hindsight from their minds and try to imagine a deal being done at a time before the company collapsed, Mr Regan said.
He also urged jurors not to be daunted by the big dollar figures involved in the case.
Smith has pleaded not guilty to two counts of using his position as director dishonestly to gain advantage.
The trial before Justice Simon Whelan is continuing.
Frequently Asked Questions about this Article…
The case concerns the collapse of Melbourne-based stockbroker Opes Prime, which was declared insolvent in March 2008. The trial focuses on allegations around large loans and company accounts in the lead-up to that collapse, matters that can highlight risks in stockbroking and corporate governance.
Julian Alexander Smith is a director of Opes Prime who is accused of duping a bank into lending him $95 million just days before the firm's collapse. He has pleaded not guilty to two counts of using his position as a director dishonestly to gain advantage.
When Opes Prime was declared insolvent in March 2008, the company owed creditors about $650 million, according to the article.
Prosecutors allege that Smith signed the $95 million loan despite knowing there was a $200 million shortfall in Opes Prime's accounts. That alleged shortfall is central to the prosecution's case against him.
Defense barrister Mark Regan told the Victorian Supreme Court that Smith intended to rescue Opes Prime and did not commit a crime. Regan described the prosecution's theory as illogical, urged jurors to avoid hindsight, and said a company collapsing doesn’t automatically mean criminal conduct.
Smith has pleaded not guilty to two counts of using his position as a director dishonestly to gain advantage. The trial is before Justice Simon Whelan in the Victorian Supreme Court.
The article states Smith is accused of duping a bank into lending $95 million days before Opes Prime collapsed but does not name the bank or provide further details about the loan's outcome.
According to the article, the trial is continuing before Justice Simon Whelan. The article does not report a verdict or a scheduled conclusion date.
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