The South Canterbury Finance trial has heard a former director of the company was dishonest rather than naive, in failing to report a loan to a related party.
From left: Edward Sullivan, Robert White and Lachie McLeod. Photo: Mytchall Bransgrove
Three of the company's former directors, Lachie McLeod, Bob White, and Edward Sullivan, face 18 fraud-related charges for the collapse of the country's largest finance company in 2010.
Crown prosecutor Colin Carruthers told the High Court in Timaru, that, given Mr Sullivan's background as a commercial lawyer, he would have known a South Canterbury loan to Quadrant was to a related party.
Mr Carruthers drew attention to an message sent by Mr Sullivan, in which he said South Canterbury was "effectively in control of Quadrant", and said the only reason for not declaring the loan was to deceive investors.
