Petricevic, Roest guilty on all charges - jail inevitable

UPDATE 11am:  Convicted of misleading Bridgecorp investors and facing a substantial jail term, Rod Petricevic brazened it out to the end with a futile bid to remain at large for an Easter family reunion.

Justice Geoff Venning rejected the former Bridgecorp managing director's cheeky bid for liberty - saying Mr Petricevic, whose son flew out from the UK to be with his dad - had had enough time to make "arrangements".

Mr Petricevic and fellow director Rob Roest were remanded in custody. Director Peter Steigrad, who lives in Sydney, was allowed bail until sentencing.

In granting bail, Justice Venning said he had taken into account the demands of his "personal domestic situation". It's understood that relates to the health of his wife.

Crown seeks jail term "more than similar cases"
Substantial jail terms will be sought for convicted Bridgecorp directors, Crown prosecutor Brian Dickey says.

The charges carry a maximum penalty of five years’ imprisonment or a fine of up to $300,000.

In delivering his decision, Justice Geoff Venning indicated jail was inevitable for Petricevic and Roest, who were convicted on all charges.  

Outside Auckland High Court, Mr Dickey said he would seek jail terms "more than have been seen so far in similar cases." 

Nathans Finance directors Roger Moses and Mervyn Doolan were jailed last year for two years and two months and two years and four months respectively on similar charges relating to misleading investors.

Mr Dickey says he is pleased with the guilty decision.

"We would hope the decision brings some comfort to investors to see justice done and some assurances for the market," Mr Dickey says.

There was no visible reaction from Petricevic, Roest or Steigrad as they heard the decision. 

Rod Petricevic, Rob Roest guilty on all charges

10am: Bridgecorp directors Rod Petricevic and Rob Roest have been found guilty on all charges of misleading investors in the company's 2007 collapse.

Peter Steigrad was found guilty and convicted on five charges and not guilty and discharged on five charges.

Rod Petricevic and Rob Roest have been remanded in custody - an indication they face a possible jail term.

The verdict was delivered in the Auckland High Court, by Justice Geoff Venning.

He said the Crown had proved beyond reasonable doubt the three directors had misled investors in the 2006/2007 prospectus and investment statements through which Bridgecorp sought money from the public.

Mr Roest and Mr Steigrad, who lives in Sydney,  will be sentenced on May 18.

The charges carry a maximum penalty of five years’ imprisonment or a fine of up to $300,000.

Bridgecorp chairmen Bruce Davidson pleaded guilty  to the same charges last year and was sentenced to home detention and community service, and paid $500,000 in reparation.

Director Gary Urwin also pleaded guilty and is awaiting sentencing.

Bridgecorp’s June 2007 collapse saw 14,000 investors lose $459 million – an average of about $33,000 each.

The trial at Auckland High Court lasted almost six months.

Messrs Roest and Petricevic sat through the entire trial beside their lawyers, giving defence evidence under vigorous Crown cross-examination.

Mr Steigrad lives in Sydney and flew in for his turn in the witness box.

The charges:

Messrs Petricevic, Roest and Steigrad pleaded not guilty to the charges, brought by the Financial Markets Authority.

The charges related to alleged offending by the accused in their capacity as directors of Bridgecorp, between December 21, 2006, and July 6, 2007.

All three directors faced six counts under the Securities Act 1978 in respect of untrue statements in prospectuses and investment statements dated December 21, 2006, distributed by Bridgecorp and Bridgecorp Investments.

Messrs Petricevic and Roest also faced six counts under the Crimes Act and two counts under the Companies Act in respect to knowingly making false statements in prospectus extension certificates and director certificates and Bridgecorp had never missed interest payments to investors, or repayments of principal.
 

Second trial looms:

There's more court time to come for Petricevic and Roest, who will in September appear in the Auckland District Court to face another set of charges brought by the Serious Fraud Office in September.

Phil Morgan, QC, will be the Crown Prosecutor for the charges, which relate to Petricevic’s purchase of luxury motor boat Medici and a series of payments to a Panmure spray-tanner, Janita Wright.

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