Director defends actions

A FORMER director of failed Queensland fund manager Equititrust says any suggestion he used insider information to cut a deal involving himself is a “crazy stretch”, and the reality is he obtained smart advice in the lucrative transaction.

The comments from David Tucker came amid a liquidator examination of the events before and after the 2012 collapse of Gold Coast-based Equititrust, which had several funds owing investors almost $250 million.

Mr Tucker, also an insolvency law expert, has tried to head off any potential lawsuit by outlining from the stand a detailed defence of his actions with an Equititrust fund.

His recent testimony came during a Federal Court public examination, which can be revealed after the Bulletin obtained a court transcript.

The liquidators were examining how Mr Tucker, nine months after departing as an Equititrust director, came to be involved in acquiring some loans once with the Equititrust Premium Fund.

After outlaying $666,677, representing one-third the cost of the debt for sale, Mr Tucker earned $3.8 million.

But Mr Tucker testified he had never chased down the money.

Mr Tucker maintained he never relied on any information, learned as a director, in the subsequent loan acquisition.

“Absolutely not … it would have been madness to, because information would be so old and so unreliable,” he said.

In a statement, Mr Tucker said he would strenuously defend any lawsuit and the liquidators had in 2012 consented to the transaction so no legal action could occur.