Indie trial: Jury hears Bright's SFO interviews

Jurors in the trial of three former Independent Insurance directors have heard evidence from taped interviews, given by defendant Michael Bright, for a second day.

The interviews were conducted by Serious Fraud Office (SFO) investigators over two years after Independent went into liquidation.

On the stand, David Mark Harris, financial investigator at the Serious Fraud Office, recited the questions whilst prosecutor James Pavry QC responded as Bright.

The investigator questioned Bright on documents and memos relating to issues of reserving, claims management and reinsurance contracts.

Bright was queried on a January 17, 2001 email that he received from finance director Dennis Lomas. The former chairman explained that Lomas was expressing his comfort with the reserving situation. When asked if he believed the reserves were up to date Bright said he went with what his finance director told him.

“He [Lomas] is the chief financial officer—it is for him to say...I'm not an accountant,” said Bright in the SFO interview.

Another line of questioning related to a March 5, 2001 letter sent to Watson Wyatt’s Mark Trayhorn and signed by Bright.

The document affirmed that measures were in place to strengthen Independent’s reserves. Bright was asked if he’d made any attempt to check the figures.

He said: “I have a financial director. Why would I check the detail put in front of me? I believed it to be accurate.”

Bright was also questioned about his signing reinsurance documents in March 2001. He was asked if he’d seen the contracts that the documents were addenda to.

Bright said: “Not at that stage. [Terry] Masters took me through a general summary and I signed.”

Asked about the terms of the reinsurance arrangements, he added: “Masters did no more than tell me the cover was in place. He said nothing about the changes in conditions.”

Michael Bright, Philip Condon and Dennis Lomas deny charges of conspiracy to defraud. The case continues.