The author of an Australian Securities and Investment Commission report into fallen timber company Gunns’ alleged withholding of information from investors has given evidence in court. He says the company’s internal reports were very different from those given to shareholders.

Court reports from proceedings this week say the timber company withheld information that would have “seriously disturbed” investors if they knew.

Gunns’ former chairman is on trial, after he sold millions of share just months before his resources company profits dropped 98 per cent, drastically cutting the share price.

ASIC’s Wayne Lonegan, a corporate valuer, has told the Launceston Court that Gunns’ hid various stockbroker prediction of downturns in the company’s profits, with some board members allegedly expecting turnover to drop by 100 per cent.

Gunns’ former CEO John Gay has pleaded not guilty to two charges of insider trading, wherein he allegedly earned $3 million.

Mr Gay’s trial is scheduled for the Tasmanian Supreme Court in August.