Assets freeze continues on accused in VAT case

An order freezing €22 million in assets was continued by the High Court yesterday against an Irish businessman, who is charged with one of the biggest VAT frauds in UK history, and two of his companies.

Lawyers for Mr Dylan Creaven (29), with addresses in Kensington, London, and Shannon, Co Clare, and two companies, will apply to the court on Monday for some payments out of the frozen funds in order to meet legal fees and to pay employees of the companies, Silicon Technologies (Europe) Limited and Bradenville Holdings Limited, both with addresses at Ennis, Co Clare.

Mr Creaven was remanded in custody by a UK court earlier this week on charges alleging he defrauded the UK Exchequer of €250 million in a single calendar year. A London magistrates court heard the full value of the alleged fraud involved hundreds of invoices for computer chips.

Mr Creaven is accused of conspiring in VAT fraud with others to deny the UK Exchequer at least €250 million and is also accused of money laundering.

In proceedings against Mr Creaven and the two Ennis companies, the Criminal Assets Bureau (CAB) is seeking to seize some €22 million of assets. The bureau obtained, in private proceedings, an interim order earlier this month freezing that sum in assets which order was continued yesterday.

An interlocutory hearing, in which CAB will seek continuation of the freezing order pending the outcome of proceedings against the defendants, is unlikely to be heard before the new year, the President of the High Court, Mr Justice Finnegan, indicated yesterday.

Mr Michael Collins SC, for Mr Creaven and the companies, said his client was in custody in the UK and the prison authorities would not allow his lawyers have a personal visit with him before December 6th. A video conference link had been offered for December 2nd but this was not satisfactory. Mr Collins added that he will be arguing there is a serious issue to be tried in the interlocutory proceedings - that the Irish courts are not entitled to get involved in foreign revenue enforcement proceedings.

Mr Richard Nesbitt SC, for CAB, said what is involved is an alleged VAT fraud and this was a European-wide tax.

The sides indicated to the court they were close to agreement for some payments out of the funds to pay employees and to meet legal costs. The court was told some 10 employees are involved. The application for payments will be heard on Monday and the interlocutory application was adjourned for three weeks.