Kevin believed shares belonged to RMG

The Maxwell Trial: Day 81

JOHN WILLCOCK

Financial Correspondent

Kevin Maxwell told yesterday of the last face-to-face conversation with his father Robert before the mysterious plunge to his death from his luxury yacht four years ago. The wide-ranging conversation took place the day before the publisher set off for a short break on his boat at the end of October 1991.

Kevin told an Old Bailey jury on his fourth day of giving evidence that his father was still suffering from a chest infection, which he hoped to throw off before flying on to Israel for business meetings. During their talk Robert Maxwell told Kevin he had transferred the beneficial ownership of pounds 22m of shares in the Israeli pharmaceutical concern Teva from BIM (Bishopsgate Investment Management, which administered the pensions funds) to the Robert Maxwell Group.

His father had done exactly the same thing earlier that year with pounds 100m worth of shares with another Israeli company, Scitex, before they were successfully sold at a handsome profit.

His father had shown him stock transfer forms for the Teva shares. He saw a "substantial benefit" if the shares were offered as belonging to the RMG rather than BIM, "particularly because of the positive PR that would accrue to the group from another successful sale of Israeli assets at a profit".

Robert Maxwell told his son he would arrange for the re-registration of the Teva shares in RMG's name. Kevin said he believed his father and thought the shares now belonged to RMG.

Asked by his counsel, Alun Jones QC, why he thought that, Kevin Maxwell said: "The only explanation I can give is simply years of working with him. In my whole cumulative experience of doing business with him, if he said something he meant it and I relied on what he said to me."He was not concerned about the paperwork because frequently with his father's dealings the paperwork followed later, sometimes much later.

That was the last face-to-face meeting Kevin Maxwell hadwith his father. But he spoke to him on the boat and at one stage his father had wanted him to fly out and join him for a business meeting. But in the end they resolved this over the telephone.

He had expected his father back in England for a dinner of the Anglo- Israeli Association where he was a guest of honour and due to speak. But in a phone call from the boat his father explained that he had still not shaken off his cold, had cancelled the trip to Israel but would be back in time for an important business meeting he and Kevin Maxwell were due to have with the chief executive of Lloyds Bank.

Kevin Maxwell, his brother Ian and former Maxwell financial adviser Larry Trachtenberg all deny conspiracy to defraud the pension fund by misusing the Teva shares and pledging them as security for a loan.

Kevin Maxwell alone denies a similar charge of conspiring with his late father to misuse the Scitex shares to pay private Maxwell company debts. The prosecution allege in both cases that the shares did not belong to RMG but the pension fund.

The trial continues today.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Attenborough with the primates
tvWhy BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
News
Campbell: ‘Sometimes you have to be economical with the truth’
newsFormer spin doctor says MPs should study tactics of leading sports figures like José Mourinho
Sport
football
Life and Style
Agretti is often compared to its relative, samphire, though is closer in taste to spinach
food + drink
News
Kelly Osbourne will play a flight attendant in Sharknado 2
people
News
Down-to-earth: Winstone isn't one for considering his 'legacy'
people
News
The dress can be seen in different colours
i100
Sport
Wes Brown is sent-off
football
Voices
Lance Corporal Joshua Leakey VC
voicesBeware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Life and Style
Alexander McQueen's AW 2009/10 collection during Paris Fashion Week
fashionMeet the collaborators who helped create the late designer’s notorious spectacles
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003
Barbara Woodward: Britain's first female ambassador to China intends to forge strong links with the growing economic superpower

Our woman in Beijing builds a new relationship

Britain's first female ambassador to China intends to forge strong links with growing economic power
Courage is rare. True humility is even rarer. But the only British soldier to be awarded the Victoria Cross in Afghanistan has both

Courage is rare. True humility is even rarer

Beware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Alexander McQueen: The catwalk was a stage for the designer's astonishing and troubling vision

Alexander McQueen's astonishing vision

Ahead of a major retrospective, Alexander Fury talks to the collaborators who helped create the late designer's notorious spectacle
New BBC series savours half a century of food in Britain, from Vesta curries to nouvelle cuisine

Dinner through the decades

A new BBC series challenged Brandon Robshaw and his family to eat their way from the 1950s to the 1990s
Philippa Perry interview: The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course

Philippa Perry interview

The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course
Bill Granger recipes: Our chef recreates the exoticism of the Indonesian stir-fry

Bill Granger's Indonesian stir-fry recipes

Our chef was inspired by the south-east Asian cuisine he encountered as a teenager
Chelsea vs Tottenham: Harry Kane was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope

Harry Kane interview

The striker was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope
The Last Word: For the good of the game: why on earth don’t we leave Fifa?

Michael Calvin's Last Word

For the good of the game: why on earth don’t we leave Fifa?
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?