Fraud trial told company's financials are 'less reliable'
NEXIS Holdings went from a one million euro profit to a 27.9 million euro profit in just 12 months, but a forensic accountant says its financial documents are "less reliable" because they were never audited.
The Australian equivalent for that profit range is about $1.5million to $45million.
The company's chairman Erwin Walter Filler and CEO Rahoul Ray are on trial for fraud over the sale of Sunshine Coast property Yalanga Station to Nexis.
Mr Filler and Mr Ray have pleaded not guilty to eight charges of fraud.
Mr Ray and Mr Filler are accused of tricking Maureen and Wilhelmus van Zetten into trading their Noosa hinterland cropping and grazing property for millions of "worthless" Nexis Holdings shares and for more than $2 million cash between 2009 and 2011.
The Crown alleges Mr Filler and Mr Ray also tricked the van Zettens into making payments of $900,000 to the Commonwealth Bank and more than $1 million in stamp duty in relation to the sale.
Nexis was listed on the Frankfurt Stock Exchange as a business that turned recycled waste products into house building materials.
Accountant David van Homrigh on Monday told a Brisbane District Court jury that he examined Nexis's 2008 and 2009 financial and share trading documents in 2012.
Mr van Homrigh said the company's accounts stated that it made a one million euro profit in 2008 and that climbed to 27.9 million euro in 2009.
However, Mr Homrigh said he had concerns about the figures because Nexis's financials were not audited.
"It was unusual because the company was raising funds and investing," he said.
"I was surprised there was no audit and because there was no audit the accounts were less reliable.
"The company was seeking to attract investors and financial partners so an audit is essential for credibility."
Mr Homrigh said the 1.5 billion Nexis shares were low in price and only a small number were traded.
"The trading is too thin - you don't know if the people who are trading are doing so at arm's length," he said.
The trial before Judge Julie Dick continues.