Australian basketball great Shane Heal has appeared in a Brisbane court over allegations he defrauded former friend and current NBA coach Brett Brown of $750,000 as sole director of three companies.
The four-time Olympian was charged with three counts of fraud following an ASIC investigation into the firms, relating to alleged misconduct in 2008, 2009 and 2010.
Heal worked as the Australian Boomers assistant coach under Brown, the only complainant in the case, from 2009 to 2011.
Philadelphia 76ers coach Brown is giving evidence in a committal hearing at the Brisbane Magistrates Court on Friday about his investments in the 46-year- old's business ventures.
Sporting his trademark bleach-blond hair, Heal sat in court as defence barrister Peter Davis, QC, questioned Brown about his personal and professional history with the long-time former NBL player and coach.
In particular, Mr Davis questioned how Brown came to invest $250,000 in one of Heal's companies, so it could acquire a franchise to build a coffee shop in Southport.
The 76ers coach said while he was not given any legal title over Heal's residence, there was an understanding the property's equity would secure the loan.
"I did not feel I was taking a risk, because of the home," Brown said.
"My comfort level was with the home - the equity in the home".
But asked if there was anything in the loan documents that provided the money had to be used for a particular purpose, Brown said: "I assumed that the money was going to be used for what Shane told me it was going to be used for".
The three companies - Shyfox Pty Ltd, Cre8ive Constructions Queensland Pty Ltd and 23 Investments Pty Ltd - are all now deregistered.
Heal's illustrious sporting career included two stints in the NBA with the Minnesota Timberwolves and the San Antonio Spurs amid a 21-year stretch in the NBL that saw him play at five different clubs, including the Sydney Kings and Brisbane Bullets.
The point guard became most famous internationally for a fiery on-court exchange with American great Charles Barkley before the 1996 Atlanta Olympics.
The hearing continues.
AAP