Friday, March 19, 2010

“Bill Express 'paid personal loans' (The Age)” plus 1 more

“Bill Express 'paid personal loans' (The Age)” plus 1 more

Bill Express 'paid personal loans' (The Age)

Posted: 19 Mar 2010 09:19 AM PDT

AN EXAMINATION into the $250 million collapse of Bill Express has heard that the public company's money was used to pay the personal loans of directors, their business associates and family members.

In 2005, several Bill Express directors, including chief executive Ian Christiansen, his brother and executive director Hal Christiansen, and executive director Julian Little, jointly organised to borrow $3.5 million from Sydney-based lender Seiza Capital.

The 13 parties to the loan from Seiza Capital included Ian Christiansen's friend Sandro DiDonato, the owner of TBS Group and Australian Private Networks, two related companies that have been involved with Bill Express and On Q's business and operations for more than a decade. Other parties named on the Seiza Capital loan document include Enzo DiDonato, a cousin of Sandro DiDonato, Ian McKenzie, a shareholder and former director of TBS Group, Duncan Little, brother of Julian Little, and Brian and Jean Christiansen.

The money was used to exercise options in listed On Q Group, the holding company from which Bill Express and its electronic payments system was spun out in 2004. On Q was the biggest shareholder in Bill Express. The first instalment of that loan was due on November 7, 2005. The account ledgers of Seiza, which has since been renamed Resolute Capital, show that a payment of $874,868 was received from Bill Express on that date, and credited against the personal loan given to the 13 parties.

The St George Bank account of Bill Express - a bank account shared with TBS Group - reveals an outgoing payment of $874,868 on the same day.

Resolute's records show that all five repayment instalments were received from ''Bill Express'', and not from any of the 13 parties who borrowed the money.

When shown the bank records and statements during his examination yesterday, Mr Little insisted that Bill Express had not repaid his $679,000 share of the loan from Seiza.

''I had a discussion with Hal and Ian, and they said they can provide a loan for this amount,'' Mr Little told the court.

Mr Little said that loan was ''undocumented'', and neither brother had ever asked him to repay the money.

''It's there in black and white, Mr Little,'' pressed Peter Bick, QC, counsel for PPB. ''It's the exact sum paid to Seiza, on the same day.''

''I see that and I can't explain it,'' replied Mr Little. ''I am not denying that it is there. My belief was that I borrowed that money from Ian and Hal Christiansen.''

''You are clutching at straws, Mr Little,'' replied Mr Bick.

Pressed further, Mr Little later admitted that he was told by the Christiansens that he would never have to repay the money borrowed from Seiza.

''The Christiansens paid out everyone else's loans, didn't they?'' asked Mr Bick.

''I believe so,'' replied Mr Little.

Asked by Mr Bick if such transactions were ''appropriate'', Mr Little replied: ''Bill Express's funds should not have been used. I do not accept that they were, but they should not.''

The examination of Mr Little will continue on April 19.

Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction.



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Company funds repaid directors' loans (Brisbane Times)

Posted: 19 Mar 2010 09:40 AM PDT

AN EXAMINATION into the $250 million collapse of Bill Express has heard the public company's money was used to pay the personal loans of directors, their business associates and family members.

In 2005, directors including the chief executive Ian Christiansen, his brother and executive director Hal Christiansen, and executive director Julian Little, jointly organised to borrow $3.5 million from Sydney lender Seiza Capital.

The 13 parties to the loan from Seiza Capital included Ian Christiansen's friend, Sandro DiDonato, the owner of TBS Group and Australian Private Networks, two related companies involved with Bill Express and On Q's business and operations for more than a decade.

Other parties named on the Seiza Capital loan document include Enzo DiDonato, a cousin of Sandro DiDonato; Ian McKenzie, a shareholder and former director of the TBS Group; Duncan Little, brother of Julian Little; and Brian and Jean Christiansen.

The money was used to exercise options in listed On Q Group, the holding company from which Bill Express and its electronic payments system was spun in 2004. On Q was the biggest shareholder in Bill Express.

The first instalment of that loan was due on November 7, 2005. The account ledgers of Seiza, which has since been renamed Resolute Capital, show a payment of $874,868 was received from Bill Express on that date, and credited against the personal loan given to the 13 parties.

The St George Bank account of Bill Express - a bank account shared with TBS Group - reveals an outgoing payment of $874,868 on the same day.

Resolute's records show that all five repayment instalments were received from ''Bill Express'' and not from any of the 13 parties who borrowed the money. When shown the bank records and statements during his examination yesterday, Mr Little insisted that Bill Express had not repaid his $679,000 share of the loan from Seiza.

''I had a discussion with Hal and Ian, and they said they can provide a loan for this amount,'' Mr Little told the court.

Mr Little said that loan was ''undocumented'' and neither brother had ever asked him to repay the money. ''It's there in black and white, Mr Little,'' pressed Peter Bick, QC, counsel for the liquidator PPB. ''It's the exact sum paid to Seiza, on the same day.''

''I see that and I can't explain it,'' replied Mr Little. ''I am not denying that it is there. My belief was that I borrowed that money from Ian and Hal Christiansen.''

''You are clutching at straws, Mr Little,'' replied Mr Bick.

Pressed further, Mr Little admitted that he was told by the Christiansens that he would never have to repay the money borrowed from Seiza.

''The Christiansens paid out everyone else's loans, didn't they?'' asked Mr Bick.

''I believe so,'' he replied.

Asked by Mr Bick if such transactions were ''appropriate'', Mr Little replied: ''Bill Express's funds should not have been used. I do not accept that they were, but they should not.''

The examination of Mr Little will continue on April 19.

Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction.



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