Nexis director was worried about 'fraudulent accounts'
A FORMER director of Nexis Holdings says he had "major concerns" about the company's accounts around the time it bought the $25 million Sunshine Coast property Yalanga Station for cash and millions of shares.
"I had major concerns, literally about every single line on that report," Richard James Walker, 55, said of the company's annual report for 2010.
Mr Walker told a Brisbane District Court jury on Wednesday that he raised his concerns with Nexis CEO Rahoul Ray, who has pleaded not guilty to eight counts of fraud.
Mr Ray and his co-accused, chairman Erwin Walter Filler, are accused of tricking Maureen and Wilhelmus van Zetten into trading their idyllic Noosa hinterland cropping and grazing property for millions of "worthless" Nexis Holdings shares.
Nexis was delisted after it floated on the Frankfurt stock exchange.
The Crown alleges Mr Filler and Mr Ray also tricked the van Zettens into making payments of $900,000 to the Commonwealth Bank and more than $1 million in stamp duty in relation to the sale.
"I brought (my concerns about the annual report) up with Mr Ray fairly soon after I saw the draft report - about mid-December," said Mr Walker, who resigned from the company shortly after seeing the document.
"I did not want to be part of what I call fraudulent accounts.
"I told him in very direct terms that the whole report was fraudulent.
"Absolutely nothing was correct.
"He winked at me and said 'Thank goodness for the global financial crisis'."
Mr Walker said Mr Ray asked him to find a bank that would give a letter to Nexis, verifying it had "five million euros on deposit".
"The company didn't have five million euros on deposit but he wanted a letter," Mr Walker said.
"That pretty much shocked me.
"There are banks that can do that sort of thing but it's not a world I want to get involved in."
The court previously heard that Mr Filler told the van Zettens that Nexis's main business was mass-producing cheap housing from recycled waste products and that his company planned to produce 300,000 of these homes in China and about 80,000 in Brazil.
The trial before Judge Julie Dick continues. - ARM NEWSDESK