relisting, page-9

re: re relisting, these 'ellas from calabria ? nm Oil company director questioned

11feb06
WITHIN one month of joining an Adelaide oil company as a director, Julian Waterman signed a $200,000-plus cheque to repay a loan to his mother-in-law.

Mr Waterman is being examined in the Federal Court in relation to his involvement in the Mercorella Scheme - an unlicensed investment scheme run by Giuseppe "Joe" Mercorella, which left investors about $60 million out of pocket when it collapsed in July.

ASIC has alleged the scheme involved Mr Mercorella accepting loans from people and companies in return for interest rates of between 2 and 5 per cent a month.

Mr Waterman was made a director of former Adelaide companies Lion Energy and Entek Energy by then managing director Joe Mercorella in June, right about the time the Mercorella Scheme collapsed.

Mr Waterman said he joined the companies as a director "because Joe asked me to".

In court this week, Mr Waterman could not recall which company it was for, but said the only transaction he could recall being involved with during Mr Mercorella's tenure was to sign a cheque for $200,000$300,000 made out to Tracey Sobey.

Mrs Sobey is the wife of Mr Waterman's father-in-law, Anthony Sobey, who is understood to be a life member of bikie gang the Gypsy Jokers.

Mr Sobey was also paid $150,00 in consultancy fees by Lion Energy.

Lion Energy, which has been suspended from trading on the Australian Stock Exchange since August, was left with $2.9 million in bad debts accrued under Mercorella's management.

Federal Court examinations regarding the Mercorella Scheme are expected to continue for another month at least.