THE defence in the Appliance Traders Limited (ATL) pension fraud trial appeared ready yesterday to deal with the four allegedly forged letters that are at the centre of the year-long trial of three former ATL executives on fraud charges.

Defence lawyer K D Knight, QC brought up the letters yesterday, one of the rare times that any of the three main defence attorneys touched the subject, on which the prosecution has built its case.

Knight made a last-ditch effort to create doubt over the creation date of letters purporting to give consent for the distribution of $1.7 billion of pension fund surplus, as he cross-examined lead investigator Senior Superintendent Fitz Bailey in the Corporate Area Resident Magistrate’s Court, Half-Way-Tree.

Jeffrey Pyne, the former managing director of Gorstew Ltd, the holding company for Stewart’s group of companies; Patrick Lynch, the former chairman of the pension fund; and Catherine Barber, the former general manager of the scheme, are believed to have conspired in the forging of the four letters to deceive that consent was given for the distribution of $1.7 billion in pension fund surplus.

The prosecution maintains that the letters, which were presented to Stewart by Barber, were backdated to 1998, 2002, 2005, and 2008. Pyne, who signed the letters, had left the company seven months before December 15, 2010 when the alleged forgery was discovered.

Lynch is alleged to be the mastermind behind the scheme, the court was told.

Knight, who is representing Dr Pyne, asked Bailey if his investigation showed that the letters where created on the date they are purported to have been made, and Bailey said ‘no’.

Knight then asked Bailey if his investigation proceeded on the premise that the letters, for example the 1998 letter, was written in 1998, and Bailey said ‘no’.

Questioned further, the SSP said the letters were created some time in 2007 or after.

Knight completed his cross-examination following the luncheon adjournment, clearing the way for Deborah Martin, representing Barber, to begin her examination of the witness.

United States-based document analyst Eric Speckin testified last month on behalf of the prosecution that his forensic tests had shown the letters were all signed at the same time while being stacked one on top of the other.

Yesterday, both the prosecution and defence made submissions on an application from the prosecution to have the statement of Gorstew Ltd secretary Ken Lewis entered into evidence under Section 31D of the Evidence Act, on the grounds of his illness.

Queen’s Counsel Frank Phipps, who represents Lynch, will today present to the court case files to support his submission against the application, to be followed by a response from the prosecution.