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April 13th, 2012 
FAKE NEWS for the Zionist agenda A Melbourne businessman behind a failed $100 million development deceived a building company by lying about a bank loan to get construction under way, a court has heard.
Giuseppe De Simone, 53, has pleaded not guilty in the Victorian County Court to a charge of obtaining financial advantage by deception in 2006.
As the sole director of Seachange Management Pty Ltd, De Simone deceptively told a building developer that financing had been secured for the first two parts of the development, although no bank loan had been approved, his trial was told on Friday.
In his opening address, prosecution barrister Steven Milesi said De Simone had signed a $1.8 million contract with Bevnol Constructions and Developments Pty Ltd to build the first part – 11 units – of a retirement village at Ocean Grove on Victoria’s Bellarine Peninsula.
Mr Milesi said De Simone was likely to receive the $12 million in finance required from either BankWest or National Australia Bank, but both loans were subject to a land evaluation.
An initial evaluation was lower than expected and De Simone sought another.
But in order to start building, Bevnol’s insurer needed proof that Seachange had the capacity to fund the project.
In a bid to get construction started before Christmas, De Simone deceived the builder by claiming in a letter that finance was in place, Mr Milesi said.
Though BankWest provided a short-term loan of $3 million, this was only to buy out minority shareholders, he said.
Construction had begun in September but had ceased after progress payments were not paid to Bevnol and De Simone informed them on November 30 that bank finance had still not been secured.
The banks had declined to finance the project and it had collapsed.
“If Bevnol had not been deceived into believing that there had been loan approval and finance in place … they would not have moved on the project,” Mr Milesi said.
“This was a deliberate and dishonest act by the accused man.”
De Simone’s barrister Alan Swanwick said the letter never referred to bank financing, but $3 million of funding committed by a group of wealthy investors behind Seachange’s $100 million project.
“This letter is the crux of the trial, this is what the prosecution says was the instrument of deception,” Mr Swanwick said.
“Where in the letter does it say it is talking about bank finance? Nowhere.”
He said payments to Bevnol had been withheld because of concerns the work was substandard, not because of a lack of funds.
The trial is continuing before Judge Ross Howie.
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