Investor asked to bail out firm run by Shropshire pair, jury is told
An investor in an animated film business run by two Shropshire men alleged to be involved in a £14 million fraud was asked to bail out the company because there was no money to pay staff wages, a court has heard.
Alan Galley told a jury at Birmingham Crown Court he received a "nervous" call from defendant Simon Drew asking for £80,000 because they had "run out of cash".
Drew, 49, formerly of Larches Lane, Oreton, near Cleobury Mortimer, and now living in West Sussex, and David Griffiths, 50, of New Road, Oreton, deny 16 charges of fraud by false representation and 18 allegations of deception, involving the obtaining of monies, cheques and financial guarantees between 2004 and 2009.
Monies went through Bewdley-based Inspire GLG Ltd, which acted as the hub for a series of limited companies set up to produce animated children's TV programmes.
Giving evidence in the sixth week of the trial, Mr Galley, said Drew called him in 2008 to ask for the money to cover the wages.
He had already invested around £200,000 in three of the film projects between 2005 and 2007 and provided a further £175,000 by way of a guarantee on bank loans.
"He sounded unnerved, it was a very difficult conversation," he said. Drew's request for the money to cover staff wages was the first time he had heard that there was a cash-flow problem. Mr Galley said he agreed to advance the £80,000 as a short term loan and told Drew he did not want to invest further money in the film projects. However, documents showing on old address for Mr Galley, who is from Surrey, revealed that the monies had been recorded as an investment.
Mr Galley heard later that Inspire GLG Ltd and the film companies had gone into administration.
The trial continues.
