Nexis CEO Rahoul Ray and chairman Erwin Walter Filler have pleaded not guilty to eight counts of fraud They are accused of tricking Maureen and Wilhelmus van Zetten into trading their Noosa hinterland cropping and grazing property for millions of
Nexis CEO Rahoul Ray and chairman Erwin Walter Filler have pleaded not guilty to eight counts of fraud They are accused of tricking Maureen and Wilhelmus van Zetten into trading their Noosa hinterland cropping and grazing property for millions of "worthless” Nexis Holdings shares and for cash.

Forensic accountant says Nexis report worst he's seen

A FORENSIC accountant has described an important Nexis Holdings financial report as the worst he has ever seen.

David van Homrigh on Thursday told a Brisbane District Court jury that he examined every aspect of the company as part of his investigations into the sale of Yalanga Station in December of 2011.

Mr van Homrigh was giving evidence during the fraud trial of Nexis CEO Rahoul Ray and chairman Erwin Walter Filler.

Both men have pleaded not guilty to eight counts of fraud.

Mr Ray and Mr Filler are accused of tricking Maureen and Wilhelmus van Zetten into trading their Noosa hinterland cropping and grazing property for millions of "worthless” Nexis Holdings shares and for cash.

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.

Nexis was delisted after it floated on the Frankfurt stock exchange.

Mr van Homrigh said Nexis's financials were not audited in 2009 but they were audited in 2010.

He said the company claimed, in 2010, to have cash of four million euro on its balance sheet but the auditor could not verify it existed.

"Given the size of the company as it was represented I certainly expected it to be audited,” Mr van Homrigh said.

"When they (a company) are not audited there is not as much value in the shares because you don't have that external assurance.

"In the course of reading the 2010 statements I came to the conclusion that ... the audit report was heavily disqualified.

"The auditor was disclaiming any opinion about whether the amount shown in the statements regarding the (value of the) intellectual property were reasonable.

"I've never seen one (an auditor's report) that reflected so badly on what it was.”

Nexis's 2010 annual report indicated it made a profit of 28 million euro and this was 42% higher than its profit in 2009.

The report also said Nexis had shareholder equity of 1.4 billion euro in 2009 and this increased to 3.8 billion euro in 2010.

In November 2011, the company traded about nine million of its four billion shares for 0.001 euros - or $9000.

This was the company's most significant share sale and it happened in the lead-up to the Yalanga purchase being finalised.

Richard James Walker, a former director of Nexis, said he was worried about the proposal to swap shares for Yalanga. 

"The (Nexis) share price was pushed up artificially,” Mr Walker said.

"It was pushed up. It was pushed up.

"The sale exposed Nexis to selling shares that were unrealistic.

"I haven't changed my opinion.”

Mr Walker also conceded that he was in charge of an unconnected company about 15 years ago that was found to be selling "fantasy stocks”.

Mr Walker said he only worked with LifeWealth8 Ltd for 12 months and he put the company into liquidation when he realised there was an issue with its shares.

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


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