Mr Seán Gannon, a director of Corran Building Services, which is in liquidation, and a number of other companies, has been convicted of failing to keep proper books of account and of failing to make annual returns.
The prosecution, which was heard at Naas District Court, was taken by the Director of Corporate Enforcement, Mr Paul Appleby, and is the first for fraudulent trading.
Mr Gannon was given two concurrent sentences of six months, which are suspended for 12 months, in respect of the charges of fraudulent trading and failing to keep proper books. He was also bound to the peace on his own bond of €250 for a 12-month period.
Mr Appleby said yesterday that the judgment was a significant development in the enforcement of Irish company law and confirms his office's determination to prosecute the more serious abuses of company and director legal obligations.
"It is also significant that the ODCE [Office of the Director of Corporate Enforcement\] and the liquidator of the insolvent company collaborated together in achieving a mutually beneficial result," he said.
The ODCE has a pipeline of more than 50 criminal investigations and proceedings that are being given priority.
Mr Barry Forrest, Corran liquidator, brought the case to the ODCE's attention in September 2002. The Garda then obtained a search warrant to seize documents and other information from the company's offices in Newbridge, Co Kildare.
In a follow-up search, they seized a Nissan jeep and a Saab car, which had been purchased from company funds but were used by Mr Gannon and his wife for personal use. They were subsequently sold as part of the company's assets for the benefit of creditors.
Mr Gannon pleaded guilty to the charges.
