FC Capital, Big Review TV’s financier sued by liquidator

AFR excerpt.

The liquidators of Big Review TV, the online video start-up that became one of the Australian sharemarket’s biggest scandals, are suing the Sydney-based financier FC Capital and its chief executive, alleging he was aware loans were being used to inflate the company’s share price.

A civil claim has been lodged in the Federal Court by liquidators Anthony Elkerton and Cameron Gray of DW Advisory.

The claim alleges that Brad Prout, the chief executive of FC Capital, knew that BRTV’s officers were “seeking to improperly inflate BIG’s share price for their personal benefit” and “for the benefit of the First Class Capital”.

The claim also alleged that Mr Prout, FC Capital and its subsidiary Finstro knew of “dishonest and fraudulent design” because it was aware of the unreasonable terms of the financing agreements between FC Capital and BRTV.

FC Capital had been issued with over 3 million shares in Big Un, BRTV’s parent company, as part of the arrangement.