Ex-garda denies involvement in €10m deal to make 'quick buck'

A RETIRED Garda superintendent who is among several investors suing former Fianna Fáil cllr Gerard Killally and others over an alleged land deal “scam” in Co Offaly has denied he became involved in the deal to make “a quick buck” and to exploit the planning permission Mr Killally was expected to get for the lands.

Peter Wheeler and other investors claim Mr Killally was behind a scheme under which 32.4 acres of lands at Mount Lucas, Daingean, were sold to them for €10.6 million in May 2007 when, on the same day unknown to them, Mr Killally had acquired the lands for €4.7 million via a company.

It is claimed Mr Killally indicated to investors that the lands were available for sale from Frank Mulligan (father-in-law of Mr Killally) and Mr Mulligan’s partners and that Mr Killally was a co-investor. It is alleged the former Fianna Fáil councillor set up a scheme to buy the lands from Mr Mulligan and partners for some €4.7 million and sell them on the same day for €10.6 million to the investors of which he claimed to be one.

They claim Mr Killally made a secret profit from the deal and have sued him and others, including a firm of solicitors, claiming some €10 million losses.

It is claimed the €10.6 million deal was funded via monies from the investors and a €6.3 million loan from the Educational Building Society. Some of the investors provided personal guarantees over that loan.

Yesterday, Mr Wheeler denied suggestions by Mark Connaughton, for Bourke & Co solicitors, Drimnagh Road, Walkinstown, that he knew prior to the May 2007 sale that Mr Killally had a beneficial interest in the lands.

Mr Connaughton suggested the purpose of the investors was to get planning permission for the bulk of the lands, that they knew Mr Killally was a Fianna Fáil councillor likely to get permission and the lands would be flipped quickly.

Counsel suggested the plaintiffs’ papers suggested they were “salivating at the prospect of turning over a quick buck” on a property with development potential.

Mr Wheeler denied that and said he was told by Mr Killally and others there was some €4.5 million in unconditional contracts for sale of part of the lands and the investors would have the option to sell additional sites or sell or develop the remaining lands.

The investors always intended to close the alleged contracts for sale of individual sites, he said. If someone wanted to buy the rest of the site, then “happy days”. He disagreed the value of the site lay in the planning permission obtained in February 2007.

Mr Wheeler said John Bourke was introduced by Mr Killally to him and other investors at a meeting in March 2007 as their solicitor in relation to the land deal. He said he understood Mr Bourke was solicitor for him and the other investors and believed he was involved in a partnership, syndicate and company.

He denied a suggestion by Mr Connaughton that he was wrong about Mr Bourke being solicitor for the investors and agreed he never contacted Mr Bourke after that March meeting about the deal.

Mr Wheeler, two of his brothers, six other investors and two companies are suing Mr Killally, Bourke & Co, financial advice firms and others over the May 2007 deal. The defendants include persons who themselves also invested in the deal.

Mr Killally was declared bankrupt after the case was initiated and the official assignee in bankruptcy is not participating in the action. A motion for judgment in default of defence is to be brought against Mr Killally, it was previously stated.

The other defendants have denied the claims. The action continues today.