Details of 'fake loan' company quizzed in Jenny Hutson caseLiam WalshReporterOct 1, 2019 — 2.50pmSaveLog in or Subscribe to save articleShareG8 Education’s former managing director says the first he knew of a controversial company tied to an alleged fake $15 million loan from the childcare giant was after a Takeovers Panel probe started.Chris Scott was appearing as a witness called by the prosecution on Tuesday in a committal hearing for former G8 chairwoman Jenny Hutson, who is defending charges including misusing her position as a director.Chris Scott outside Brisbane Magistrates Court. AAPMs Hutson is an accomplished corporate lawyer and merchant banker, having worked in industries from funds management to accommodation.The charges partly centre on what happened to $15 million transferred by G8 to a lawyer’s trust account. “That’s where I thought it was,” Mr Scott told the Brisbane Magistrates Court.Mr Scott told the court the money had been sent there “as a show of good faith” to a potential Asian co-investor.Related QuotesGEMG8 Education$2.514.58%1 year1 day3.12 at 1/3/19Oct 18Feb 19Jun 19Oct 192.002.503.003.5010AM12PM2PM4PM2.4202.4402.4602.4802.500Updated: Oct 11, 2019 — 6.50pm. Data is 20 mins delayed.View GEM related articles AdvertisementThe court has been told a person who Ms Hutson knew, David Burke, was effectively credited in the ledger with the money. Mr Burke allegedly authorised dispersions from the trust account.A loan arrangement for the money was purportedly drawn up with G8 so Mr Burke's private company Ingenious Communications could invest in childcare centres. Prosecutors allege the loan was not genuine.The court heard the $15 million was partly used for Nigel Elias, another businessman Ms Hutson knew, to purchase shares in a childcare rival that G8 Education hoped to acquire. That acquisition failed and a dispute reached the Takeovers Panel, which examined the role of Ingenious.Mr Scott said: “I first heard about Ingenious, I think, [was] through the Takeovers Panel proceedings and I asked Jenny about it.”But he agreed it was possible that Ms Hutson might have told him at some stage about Mr Burke and Ingenious, when he was busy running G8.He also expressed surprise when he saw an Ingenious loan agreement in October 2015. “The surprise was that I saw the loan agreement ... for the first time and I was already aware of Ingenious from the Takeovers Panel,” he said.Mr Scott said he could not recall G8 ever loaning money so a third party could purchase centres.“We used to laugh that we never had money in our pocket long enough” because G8 would spend it acquiring centres, he said.The $15 million had been returned with interest, he said.He said he had never had any reason to doubt Ms Hutson's integrity.“I owned a large chunk of this company,” he said. “It was my children’s inheritance.“If I was prepared to back Jenny, it means I really believed her.”The proceedings abruptly paused on Tuesday afternoon with a warning for witness Nigel Elias, the businessman whose private company acquired $8.5 million in shares in childcare rival Affinity using money from the lawyer’s trust account.Nigel Elias. Neil Clelland, acting for Ms Hutson, quizzed Mr Elias about answers he gave in court on Tuesday that he had never phoned lawyers McCullough Roberston to set up a company.Mr Clelland peppered Mr Elias about whether this contradicted a transcript of his earlier ASIC examination in 2016, when Mr Elias said it was his choice to call McCullough Robertson to set up a company. Mr Elias, who has not been charged with any wrongdoing, in the transcript also said no one else had asked him to call McCullough Robertson, the court heard.Mr Clelland: Was that a truthful answer?Mr Elias: I don’t believe so.Mr Clelland: So that was a false or misleading answer to ASIC?Mr Elias: I believe it may have been.Magistrate Tina Previtera warned Mr Elias that he could exercise privilege on the grounds of self-incrimination when answering any question that suggested he might have committed an offence.Mr Elias said he would seek legal advice. The hearing continues.SaveLog in or Subscribe to save articleShareLicense articleRead MoreChildcareUnable to follow, try againG8 Education
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