Preparatory hearing for three directors accused of conspiracy to defraud
The trial of Michael Bright and two other former directors of collapsed Independent Insurance moved a step closer this week with a further court hearing.
At a preparatory hearing at Southwark Crown Court on Monday, Bright, the former chairman and managing director of the collapsed insurer, listened to counsel define the trial's boundaries and discuss the minutiae of insurance.
Alongside Bright in court were his fellow defendants, Philip Condon, deputy managing director, and Dennis Lomas, finance director. All three deny charges of conspiracy to defraud shareholders and policyholders.
If convicted, the defendants face a maximum sentence of 10 years for conspiracy to defraud under the Fraud Act (2006) , the Serious Fraud Office (SFO) confirmed.
An SFO spokesman said: "At the top end the maximum sentence is 10 years, but the judge will obviously take other matters into account."
The trial date has been set for 14 May 2007.
Last week, it emerged that Independent's auditors KPMG and one of its partners are facing allegations of failing to correctly audit the insurer.
An action has been brought by the Accountants' Joint Disciplinary Scheme after several years of investigation.
A hearing is likely to take place in the second half of this year.
KPMG said it had co-operated fully throughout the investigation and would put forward its defence as part of the tribunal proceedings.
The firm recently settled for an undisclosed sum a £300m lawsuit filed by Independent Insurance's liquidator Pricewaterhouse Coopers. The lawsuit related to KPMG's involvement in the collapse of the insurer in 2001.
