The former finance director of Versailles Group will testify as a prosecution witness in the trial of Carl Cushnie, owner of the disgraced finance group, after pleading guilty to fraud, a jury heard.
Frederick Clough had already admitted the two charges of fraud that were yesterday laid against Mr Cushnie and another Versailles employee at Southwark Crown Court.
Mr Clough, who worked closely with Mr Cushnie for 10 years, was likely to testify for a long period of time according to Anthony Evans QC, prosecuting for the Serious Fraud Office (SFO). However, he stressed that "the prosecution case did not entirely depend on him".
Versailles Group, which provided bridging finance to small companies, imploded in December 1999 after a Ј100m accounting black hole was discovered. Founded, owned and run by Mr Cushnie, the group proved a favourite with London analysts who sent its share price from 7.5p at flotation in 1995 to Ј2.50 at its collapse.
