Anglo claims Quinn family sold €19m Russian property for about €2,500

A €19 MILLION property in Russia was sold by a Seán Quinn family company to another company for about €2,500 in a transaction allegedly “orchestrated” by a son-in-law of the bankrupt businessman, the High Court was told yesterday.

Paul Gallagher SC, for the former Anglo Irish Bank, suggested to Peter Darragh Quinn, a nephew of Mr Quinn, the sale of the property was orchestrated by Stephen Kelly, husband of Aoife Quinn, a daughter of Mr Quinn, and would only be logical if the purchasing company was connected to the Quinn family.

Peter Quinn said he was not involved in the matter and added perhaps there was no logical or commercial sense involved.

Mr Quinn also said, because of the way Anglo had acted towards the Quinn family, they had tried to provide as little information as possible to it about matters related to their international property group (IPG).

When the High Court made orders in June and July 2011 restraining the family dissipating assets of the IPG, he did not understand those orders to require the family to provide the bank with information about previous steps taken by them to place assets out of reach.

The cross-examination of Mr Quinn, acting general manager of IPG from 2009, concluded yesterday in the hearing before Ms Justice Elizabeth Dunne of the bank’s application for orders for attachment and, if necessary, committal against him, Seán Quinn snr and Seán Quinn jnr for alleged contempt.

The bank contends the three acted in contempt of the June and July 2011 orders. Among the claims against Peter Quinn is that he participated in the assignment of Quinn companies’ loans totalling some €163 million for nominal consideration to Galfis Overseas Ltd, a Belize-registered company allegedly controlled by the Quinns, on or after July 20th, 2011. It is also alleged he and Seán Quinn snr deliberately backdated assignments of multimillion-euro loans so it would appear they occurred on April 4th, 2011, prior to the court orders.

The contempt proceedings were adjourned to resume on April 30th or May 1st next. Seán Quinn snr will be the next witness.

In re-examination yesterday by Brian O’Moore SC, for the Quinns, Peter Quinn said there was “no master plan” by the Quinn side in relation to the IPG and his concern was in relation to unsecured assets.

His wish had been for the bank and the Quinns to have thrashed things out sensibly.

Peter Quinn agreed, when he swore an affidavit in the injunction proceedings, he did so on behalf of all the Quinn defendants. He said he addressed matters within his own knowledge in that affidavit and had not asked the other defendants about matters not within his knowledge.

Asked whether it was a “coincidence” that three Russian companies in the IPG had all sought bankruptcy, he said he was only involved in one of those bankruptcies. Mr Gallagher also put to Mr Quinn a series of questions about the alleged assignment by Seán Quinn snr of a €45.2m debt to a Northern Ireland company, Innishmore, controlled by Peter Quinn, with a view to taking control of Ukrainian property assets worth about $78m.

Mr Quinn denied the assignment was a fraud.

Mr Quinn also told the court Seán Quinn snr had signed minutes of meetings of Quinn companies in the Ukraine when Mr Quinn snr had not attended those meetings. That was not best practice, he said.