The trial of Tony Morris, who is accused of defrauding a number of pension funds as part of the £52m GP Noble fraud, has started at Southwark Crown Court.
Prosecution counsel David Farrer QC said Morris and co-defendant Peter Malmstrom were key players in the two stage disinvestment of a total of £52m from a series of underfunded pension schemes.
Many of the schemes were headed either towards the Pension Protection Fund or the Financial Assistance Scheme.
The court today heard the first stage took place in June 2007, with a second "sweep" in April 2008.
The cash was transferred first to UK bank accounts, then two British Virgin Island companies - Fareston and Multiple Unilateral Financial Futures (MUFF) established to handle the cash.
The prosecution said The Money Portal founder Morris, who denies all nine charges against him, bought out GP Noble trustees in 2005 and, therefore, should have been well aware of the duties imposed on all pension scheme trustees.
Jurors were told the millions were earmarked for risky investments in beach-front properties in Thailand, an Australian-based online book maker and a pizza parlour.
Farrer said: "These funds were to be used to foster dreams of considerable wealth for all concerned.
"Morris and Malmstrom knew quite well that the £52m was pension fund money to provide retirement income.
"Morris instigated operations to use these funds for risky investments from which he would take large profits."
The court heard Morris later used a significant chunk of the appropriated funds to pay off his divorce settlement.
The trial continues...
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