The liquidator of two companies formerly controlled by businessman Philip Marley has written to creditors in recent days to tell them of matters "simply extraordinary" and of "great concern".
Creditors owed substantial sums by Ely-related companies include the Revenue Commissioners; Zolfo Cooper, the liquidators of a British company called Space Student Living Ltd; IBRC; Investec; landlords; an accountancy firm; and an estate agent among others.
The report by Collins Garcia, a Dublin accountancy firm, relates to two former firms of the north Dublin businessman – Ely Property Group Ltd and Ely Properties Limited. It informed creditors it was hard to estimate what the Ely-related entities owed the Revenue Commissioners because of a lack of documentation.
VAT cessation
It estimated a VAT liability of €750,000 was outstanding because it believed Ely "simply made a decision to stop declaring and furthermore paying over to the Revenue Commissioners any VAT for a number of years". Collins told creditors the underdeclaration of VAT was "systemic and continual".
The report found a “number of instances” where the Ely group has been used as “conduits” to “obtain, hold and subsequently disperse monies wrongfully obtained in the UK”. The report said this related to money received by Ely entities from another firm called Space, a joint venture between Mr Marley and a private equity fund called Maven, as well as the Roundhouse, an apartment block in Portsmouth. Maven is suing Mr Marley for £2 million in the UK in relation to Space, while the IBRC was taking legal action to secure control of the Roundhouse.
'Byzantine' affairs
Collins Garcia described Ely-related entities as operating in a "rather Byzantine manner". It said DLA Piper, a law firm working on the liquidation of Space, had sent it documents outlining its belief that money from Space in the UK had wrongly been moved into Ely-related firms in Dublin. Collins Garcia was "extremely concerned that Ely companies would receive substantial funds to which they appear to have had no entitlement".
The liquidator said it had been obliged to inform the Office of the Director of Corporate Enforcement.
Collins Garcia told creditors it believed the Ely group had “failed “ to adhere to keeping proper books and records as required under section 202 of the Companies Acts (RoI). The liquidator also outlined how Ely Properties was supposed to act as property managers in Ireland and Britain in return for 11 per cent of rental income. Collins Garcia said “for an extended period of time, no rents were paid onward by their rightful owners”. Mr Marley has denied any inappropriate action on this.
Collins Garcia told creditors it believed Ely companies should not have forwarded money to Mr Marley personally and also to a company called Adwill, owned by Mr Marley's girlfriend – American television personality Dana Wilkey. Mr Marley has said all movements of money were done for entirely legitimate reasons.
Collins Garcia said Marley Media Limited (MML) received substantial payments, when MML had been dissolved in 2008. Collins Garcia also saidShrewsbury Accounting, whose directors are Mr Marley and Ms Wilkey, had been used to file "fictitious" accounts for Ely Properties Ltd.
Mr Marley has said the use of Shrewsbury was a “simple error”. The report said the liquidator had “received numerous unwanted emails from Mr Marley which have been entirely irrelevant to the liquidation”. The emails were described as “abusive”.
£6 million loan
The creditors' report also goes into detail about a "major transaction in the UK" involving a loan of £6 million and a company called Herbal Hill Ltd. Actions
in relation to this, Collins Garcia said, were also of concern.
A comment from Mr Marley was requested by email. After an hour, the email response to The Irish Times was: “Thank you for your message. I am out of office until Wednesday, March 5th, 2014, with limited access to phone or email, and will respond on my return. Thank you, Philip Marley.”
