Indie trial: FSA investigated reinsurance contracts

Indie trial prosecutors have presented evidence from an FSA investigation into the company’s reinsurance contracts.

Prosecution counsel read testimony from Walter Copping, chairman of Independent’s reinsurer, Ireco, who decided not to deliver evidence in person.

Emily Radcliffe QC played the role of the FSA investigators while James Pavery QC presented the witness responses.

Before hearing the evidence, Judge Rivlin reminded jurors that on considering the evidence they were obliged to lean in favour of the defence because of the absence of a cross-examination.

The court heard that following the collapse of Independent FSA investigators had questioned Copping over eight reinsurance contracts and the events which led to them being signed off before 5 March 2001.

According to Walter Copping's evidence, Terry Masters, managing director of Independent's reinsurance advisers, Aon Re Services, had suggested building up the company’s reserves through reinsurance contracts.

From here the idea emerged to withhold reinsurance premiums in a deposit and pay the reinsurer from the interest, the court heard.

The three defendants—Michael Bright, Philip Condon and Dennis Lomas—are charged with conspiracy to defraud. They deny the charges.

The trial continues.