DETAILS of fraud charges against fallen James Estate Wines boss David Anthony James have emerged with a focus on more than a million dollars moved between accounts linked to him in 2013.
The former Hunter Valley vineyard owner was first charged in 2018 with being involved in a cheque fraud scheme worth almost $20 million, involving 98 counts of attempted fraud and one count of fraud.
The allegations are that Mr James, then aged 56, was involved in a 'cheque kiting' scheme, where he deposited valueless cheques into an account and was able to draw down on uncleared funds, with a total value of $19,870,000. After a series of delays, the matter was back in the district court on Thursday for a pre-trial hearing where two former ANZ bank employees were asked about a series of cheques banked in August, 2013.
The prosecution asked questions about whether or not, how, and for how long, withdrawals from accounts linked to Mr James - a sweep account and an overdraft account, were allowed against uncleared funds.
Former ANZ employee John Symons said that at that time, he worked in a department responsible for keeping an overview of "recalcitrant accounts".
If cheques were being dishonoured he would receive alerts, and the department's objective was to ensure that cheques were only being cleared against available funds.
Mr Symons was asked if a particular client had displayed a pattern for months of dishonoured cheques, if the bank would impose a condition so that future withdrawals could only be made against cleared funds.
He agreed that was the case, but said he was unsure when Mr James' circumstances first came to the bank's attention.
"After a short history we said enough is enough, come in for a chat, and that is what led us to putting Mr James accounts into receivership," Mr Symons said.
It was put to another man, who worked in the ANZ bank's lenders services, that Mr James' accounts were coded in such a way as to allow the withdrawal of funds against cleared and uncleared funds", but he said that in an email in June, he made contact with Mr James' bringing his attention to dishonoured cheques.
Detectives from the Financial Crimes Squad laid charges against Mr James in September, 2018. An August trial date has been abandoned and the matter is now set down for a mention before District Court Judge Penelope Wass SC.
James Estate Wines produced wines recognised by Australian and international wine judges, winning 300 medals and trophies in the five years to 2005, at which time it was sold in 25 countries throughout Europe, Asia and America.
In 2013, Mr James' Hunter Valley print and wine empire collapsed, leaving company debts of more than $25 million. It was sold in December 2014, 16 months after it was placed in receivership. It comprised a vineyard, winery and cellar door operation on 575 hectares near Baerami and a winery and cellar door on 43.6 hectares in Pokolbin.
