THE CROWN has closed its case at the fraud trial of Melanie Tapper, former general manager of the Trafalgar Development, Winston McKenzie, former manager of Workers Bank (later Union Bank, now RBTT) and his wife Elaine, after presenting its case over a two-year period.
The three are charged with defrauding Kingston businessman Bentley Rose of $7 million between 1994 and 1995 during alleged banking transactions. Rose is the majority shareholder in Benros Ltd. and Macro Finance Corporation Ltd.
Yesterday Resident Magistrate, Jennifer Straw, heard no case submissions from the lawyers representing the accused. The lawyers are arguing that the Crown has not made out any case against the three accused.
After the no case submissions are completed, attorney-at-law Gayle Nelson and Paula Llewellyn and Acting Senior Deputy Director of Public Prosecutions will reply to the submissions before the judge makes her ruling.
The Crown called 15 witnesses and tendered into evidence some 80-odd exhibits.
It is being alleged that Tapper conspired with Mr. McKenzie by using her position as manager of CIBC and Trafalgar Development Bank to facilitate the defrauding of Rose's accounts at the banks to the tune of millions of dollars. It is further alleged that the fraud was committed under the guise of giving Rose lines of credit which he did not authorise.
Evidence was given at the trial that Rose, who could not read very well but was very numerate, used to depend heavily on Mckenzie and Tapper to help him with his banking transactions. Rose would sign several documents in blank and then give instructions to Tapper and McKenzie as to what he wanted to be done, because he trusted them to carry out his instructions as to the kinds of loans he wanted. The court heard evidence that loans far in excess of what Rose had authorised were made and Rose's properties used as securities for the loans.
It was only when Rose discovered that his properties were being threatened with seizure to recover the loans, that he realised that his instructions at the banks were not being carried out.
The Crown also led evidence that although loans were taken out on behalf of Rose's companies, Rose and his companies did not benefit from any of those loans. Mr. McKenzie was a director of Rose's companies and, when Rose realised that his instructions were not being carried out, he demanded that McKenzie sever his directorship with the companies.
Evidence was also given that the mandate at CIBC was that any withdrawal over $20,000 would have to be signed by two directors but Rose said he had filled out that mandate in blank. Evidence was given that cheques for over $1 mllion were being honoured on that account with only Mr. McKenzie's signature.
Rose said he had an account at The Workers Bank (now RBTT) and the mandate was that any amount over $5,000 would have to be signed by Rose and Mr. McKenzie. Rose said Mrs. McKenzie's signature was put on the mandate at Workers Bank without his knowledge.
Evidence was given that loans, which Rose took out at Trafalgar Development Bank, were used to secure loans at CIBC but Rose said he did not know anything about those loans.
The Crown led evidence that McKenzie had used Benros' account at CIBC to pay maintenance fees, without Rose's knowledge, for an apartment at Arcadia, St. Andrew which Mrs. Tapper owned but was being occupied by someone else at that time.
There are 13 counts of fraud and Mrs. McKenzie and her husband are charged jointly in respect to two counts. Mrs. Tapper is charged with Mr. Tapper in respect of three counts of fraud. Mr. McKenzie is also charged in respect to the other eight charges.
Attorneys-at-law Lloyd McFarlane and Carolyn Reid are representing Mrs. Tapper. Delano Harrison, Q.C. is representing Mrs. Mckenzie and attorneys-at-law Walter Scott and Sharon Usim are representing Mr. McKenzie.
