MILAN, Italy (AP) – Former Italian premier Silvio Berlusconi was ordered Friday to stand trial on charges of false accounting, embezzlement and tax fraud in the purchase by his Mediaset empire of TV rights for US movies, his lawyer said.

Mediaset chairman Fedele Confalonieri and British lawyer David Mills also were indicted in the case during the preliminary hearing, Berlusconi lawyer Nicolo Ghedini told the Associated Press.

They were among 12 people ordered to stand trial November 21 on charges including tax fraud and embezzlement, Italian news agencies reported. All have denied wrongdoing.

Prosecutors allege that Mediaset purchased TV rights for US movies before 1999 through two “offshore” companies and falsely declared the costs to lower the tax bill.

Offshore companies are those generally registered in countries with lenient tax policies.

Ghedini complained that the judge did not permit the defence to present witnesses at the hearing who could have demonstrated that Berlusconi was not involved in the events in question.

“As always in Milan there has been an indictment that there should not have been. They (judges) didn’t allow us to hear witnesses,” on Friday, Ghedini said.

“We are convinced that Berlusconi will be absolved, and we are calm.”

Mills, a close friend of Berlusconi, told Sky News in London that he was baffled by the charges.

“As far as I can understand, the judge has acquitted me of being involved in any tax fraud in Italy in respect of the years when I acted for Mr Berlusconi’s companies, but wants me to stand trial for two years, 1999 and 2000, after I had stopped acting for the company,” Mills said.

Berlusconi, who lost power in April elections but remains Italy’s longest-serving postwar leader and richest man, has a long history of legal troubles linked to Milan-based business interests. To date, he has either been acquitted or seen the case dismissed because the statute of limitations had expired. He has always maintained his innocence.

Berlusconi’s three Mediaset networks are the main private TV rivals to RAI’s three public channels.

Berlusconi’s defence had argued unsuccessfully to have the proceedings moved to another city because more than 60 judges in Milan are or have been shareholders in Mediaset, and it was alleged they could not be considered impartial.

The motion was denied.

Separately, Berlusconi is accused of ordering the payment in 1997 of at least US$600,000 (euro500,000) to British lawyer Mills in exchange for the lawyer’s false testimony in the Mediaset TV rights case and one other. Both men deny the allegations.

In the Mediaset case, Mills is accused of failing to tell a court that two offshore companies involved in buying US film rights were linked to Berlusconi.

Mills, who is recently separated from British culture secretary Tessa Jowell, is also accused of failing to mention in another case a 1995 phone call with Berlusconi in which the two discussed alleged illicit payments from Berlusconi to the late Socialist premier Bettino Craxi.