The stockbroker accused of owing Lines Overseas Management more than $100,000 at one point ran up debts of $419,000 with the firm, the Supreme Court heard yesterday.

In the third day of the civil trial in which LOM Ltd is suing its former employee Carol Green, the firm's managing director Scott Lines said she was a "rogue trader" and that at the time of her dismissal she was overdrawn by this amount in two accounts she held with LOM.

Mr. Lines said: "Carol was rogue. She refused to respond to management instructions. She refused to manage her account."

But in cross examination, Ms Green's lawyer Mark Diel forced Mr. Lines to admit that an incorrect value for a share was used to calculate the amount of initial debt and claimed that LOM's calculations were wrong by about $100,000.

LOM is suing Ms Green for $110,643.26 plus interest for debts she allegedly ran up while working for them as a broker between April 1995 and December 1997 in two "margin" accounts.

On Tuesday Mr. Lines claimed she owed a quarter of a million dollars in her two margin accounts, a type of account where the client buys stocks partly from his or her own cash and partly from the brokerage firm and the stocks are used for collateral for the loan.

LOM sold off the shares in her accounts to pay for part of the overdrafts, leaving a deficit of $110,643.26.

In a counter-claim Ms Green is suing for damages for breach of contract, wrongful withdrawal of money from her account and constructive dismissal.

Mr. Scott Lines testified: "At one point, on January 22, 1997, the overdrawn cash position got up to $419,000."

He claimed he had notes in his diaries where he met with Ms Green twice before she left the company on January 22 to talk about the overdrafts in her accounts.

Speaking of a meeting he said took place on January 16, 1997 he recalled saying to Ms Green, a broker with 20 years of experience in the trade: "Carol, of all the people in the office, you are the last person I need to have this discussion with."

He added: "I recall the meeting because I was due to leave the Island the next day on a business trip and I felt the situation was critical - the situation being the situation with her accounts - it was imperative that she bring down the overdrafts immediately."

The court has heard that while he was on this trip, Ms Green had an altercation with his brother Brian, which resulted in her leaving the company.

It is during this altercation that Ms Green claims that he assaulted her. Mr. Brian Lines denies this accusation and said he remained calm during the exchanges.

The court has heard that Ms Green resigned. Mr. Brian Lines testified that Ms Green had been in "full rage" and was "screaming" during their fight he claims was about money owed to the company. But in cross examination he admitted to calling her on the phone after the row and said: "Carol, just leave".

Mr. Scott Lines said he returned and held a meeting with Ms Green in which he said they drafted a letter of resignation for her, which the court heard was never signed or sent back to LOM.

In cross examination, Mr. Diel put it to Mr. Lines that a stock had been listed with a value of ?2.50 nine days before her departure, but showed up at zero for their calculations produced in court and then once again went up to ?2.50 nine days after the period used to calculate her debts to the company, making a $100,000 change to the amounts in the accounts.

And he produced a report from LOM to back up his claim. Mr. Lines admitted the mistake and said: "It was manually imputed. If it wasn't traded it would show zero..."

Mr. Diel asked: "So it was a mistake?" Mr. Lines admitted: "It should have been priced at ?2.50."

Mr. Diel said: "So you agree with me that the Carol Green account would have been in positive." Mr. Lines replied: "Yes it would be."

The case continues today.