Police biased in ATL pension fund fraud trial - defence

One defence attorney in the billion-dollar Appliance Traders Limited (ATL) pension fund fraud trial has charged that the police investigation in the case was biased and flawed and was done in a manner to satisfy the desires of ATL boss Gordon 'Butch' Stewart.

To support his assertion, attorney-at-law Frank Phipps pointed to evidence that the probe was conducted from the St Andrew headquarters of Stewart's ATL group; that lead investigator Senior Superintendent of Police (SSP) Fitz Bailey travelled to the United States to meet with a document examiner at Stewart's expense; and that the police did no checks to verify the ATL chairman's claim that his company had been defrauded of billions of dollars.

"The prosecutorial and investigatory arms of the State were commandeered to present a biased and flawed case to satisfy the misguided interest of the complainant [Stewart]," Phipps blasted.

"A biased and flawed investigation leads to an unfair trial, and for these reasons the charges should be dismissed," he added.

No-case submission

Phipps was making his no-case submission in the Corporate Area Resident Magistrate's Court yesterday as defence attorneys began their bid to have the charges against three former ATL executives dismissed.

Patrick Lynch, former chairman of the ATL pension scheme; Catherine Barber, former general manager of the scheme; and Dr Jeffrey Pyne, the former managing director of Gorstew Limited - Stewart's holding company - are on trial for allocating $1.7 billion of interest and withdrawal surpluses to members of the scheme without Gorstew's consent and allegedly using forged letters to deceive Stewart that consent had been obtained.

Homes searched

However, in focusing attention on the police investigations, Phipps said the "really painful" part came when the defendants' homes were searched and property seized "simply on the say-so of the complainant [Stewart]".

"We don't live in a country where that is accepted. Such conduct should be condemned in the strongest possible language," Phipps, who represents Lynch, asserted.

The veteran criminal defence attorney took issue with SSP Bailey's decision - which was reportedly authorised by the commissioner of police - to fly to Florida with one of Stewart's attorney to meet with Erich Speckin, a document examiner contracted by the ATL chairman to analyse the alleged forged letters.

"A public servant you know going flies to the US to meet with the complainant's [Stewart] witness. The public needs to know if the commissioner [of police] approved this," he continued.

Attorney-at-law K.D. Knight, who represents Pyne, will make his no-case submission when the trial continues today.