14 Apr 2014

Accused knew investors would be deceived - Crown

10:08 pm on 14 April 2014

A former central Hawke's Bay mayor knew the investing public would be lied to when he did legal work for the man behind a failed finance company, the High Court at Auckland has been told.

Hugh Edward Staples Hamilton has denied charges of of theft by a person in a special relationship, making a false statement as a promoter and making a false statement to a trustee.

Crown prosecutor Nick Williams made closing arguments on Monday and said the key issue was Mr Hamilton's state of mind.

Mr Williams told the court Mr Hamilton acted as a lawyer for Raymond Schofield when Mr Schofield bought Belgrave Finance in 2005.

Mr Schofield's name was left off all the company documents associated with the purchase. Mr Williams said that left investors in the dark and allowed Mr Schofield to use the finance company as his own piggy bank.

Belgrave Finance went into receivership in 2008, owing investors $22 million.

The defence will make its closing arguments on Wednesday, before Justice Faire retires to deliberate.