No 'smoking gun' in fraud trial over collapsed Coast business

Kleenmaid collapsed in April 2009 when major creditor Westpac Bank placed the company into administration.
Kleenmaid collapsed in April 2009 when major creditor Westpac Bank placed the company into administration. Kari Bourne

A WOMAN found the job of trying to pay Kleenmaid's creditors "so stressful she only lasted six weeks", a prosecutor has told jurors.

Barrister Stephen Keim said Andrew Eric Young, accused of dishonestly getting a $13 million loan, was an "important" part of Kleenmaid businesses when the relevant firms were in dire straits.

Mr Keim delivered the second day of the Crown's opening on Wednesday at the Maroochydore man's trial.

Young, 64, is representing himself in Brisbane District Court.

He has pleaded not guilty to 19 fraud and insolvency trading charges.

Young was accused of dishonestly incurring debts, including when allegedly a director of Edis Service Logistics, Kleenmaid's former spare parts arm.

On Wednesday, Mr Keim said a woman Young told to sort out company problems quit after six weeks trying to pay creditors.

Mr Keim said the Crown did not necessarily have a "smoking gun" but would show questions arose when each debt was incurred.

He said the jury would have to tackle three major points.

They would have to find Edis was insolvent when the debts were acquired.

They would have to agree Young suspected Edis was insolvent at the relevant times.

And they would have to find Young was an Edis director.

The Crown will argue Young was at least acting as a director at relevant times.

"If you observe me every single day, employing people, sacking people - at some point you might say 'That guy's acting as a director'," Mr Keim said.

He said emails showed Young was well aware of crucial financial issues.

One was sent from a Kleenmaid supply chain manager to Young and others on January 15, 2008: "...We are on credit hold pending overdue payments," the manager wrote.

Mr Keim said the email showed two suppliers, Gorenje and Brandt, would not extend credit.

Young was also accused of dishonestly getting a $13 million loan from Westpac.

"The defendant was very keen to know exactly" when the money would arrive, Mr Keim said.

Three charges related to insolvency trading with an advertising agency between October 31, 2008, and January 31, 2009.

Mr Keim said "insolvency was both real and obvious" when Edis, trading as Kleenmaid, racked up these debts of $289,000.

On Tuesday, Mr Keim said a 2007 Kleenmaid group restructure created an illusion of separate firms when the companies effectively were one.

"Not surprisingly, changing the trading entity ... did not change the ability of the whole Kleenmaid business to trade profitably," he added on Wednesday.

Mr Keim finished the Crown opening on Wednesday afternoon.

Young will deliver an opening address on Thursday morning. -NewsRegional

Topics:  andrew eric young brisbane district court edis service logistics judge brian devereaux kleenmaid maroochydore sunshine coast

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