twiggy is a champion., page-8

Forrest statement on Chinese contracts 'overstated'

FMG is facing multi-million dollar fines if convicted of making misleading statements.

http://www.abc.net.au/news/stories/2009/04/06/2536160.htm?section=justin

The Federal Court in Perth has been told that announcements made in 2004 by iron ore billionaire Andrew Forrest and his company Fortescue Metals Group (FMG) misled the share market and investors.

Mr Forrest and FMG are on trial for misleading and deceptive conduct relating to a series of announcements to the share market, investors and the media between August and November 2004.

The case has been brought by the Australian Securities and Investment Commission (ASIC), which alleges FMG over stated the substance of agreements with three Chinese companies to build mining, rail and port infrastructure in the Pilbara.

ASIC's lawyer Neil Young QC told the court Mr Forrest and FMG maintained the illusion that the agreements were far better than they actually were.

He said the company had many opportunities to disclose the actual terms of the agreements, but instead chose to repeat the inflated claims.

Mr Young told the court he would be calling evidence from several witnesses including Mr Forrest's former personal assistant.

Mr Forrest was not in the court room and is not expected to attend the five week trial.