BANK OF Ireland believes well-known Galway businessman John Sweeney may have secretly attempted to enrich himself by hiving off funds that were due to the bank under a €10 million judgment against him.
Barrister Jarlath Ryan told the High Court yesterday that the bank had a suspicion there was fraud involved in Mr Sweeney’s switching of funds to two companies in which he had failed to disclose any interest.
Mr Justice John Edwards granted to the bank ex parteinjunctions restraining Mr Sweeney from reducing his assets below €10 million and directing him to disclose all assets in which he has an interest in Ireland.
The bank also obtained an order directing Frank Brennan and Frank Brennan Taxation Consultants, as liquidator of Tidevale Ltd or Connemara Livestock Sales Ltd, to reserve all liquidated funds of the companies towards the bank’s judgment.
Mr Ryan told the court that hotelier Mr Sweeney, who is also owner of Sweeney Oil Retail and Sweeney Oil Petrol Stations, had consented in the Commercial Court to a judgment of just under €10 million in favour of the bank.
The bank had recently discovered that he may imminently benefit from a substantial distribution of assets among members of Tidevale Ltd and Connemara Livestock Sales Ltd, both of which were in liquidation.
Connemara Livestock recently subscribed for 100 ordinary shares in Tidevale for €1.5 million.
Mr Sweeney and a Malachy King were the only directors of both companies and it was feared Mr Sweeney would benefit by this amount in the liquidation process.
The authorised capital in Connemara Livestock had increased from €63,486 to €2,333,224 and recent amendments to articles of association of Connemara Livestock entitled the holders of ordinary shares to share a fund of €2.5 million on liquidation and any surplus assets remaining.
Mr Ryan said Mr Sweeney had concealed from the bank and the High Court his interest in either Tidevale or Connemara Livestock; the bank believed he may have engineered capital injections and share financings of these companies in order to flout and defeat the court judgment.
John O’Beirne, a Bank of Ireland senior manager, told the court that Mr Sweeney’s concealment of interest in the firms indicated a high level of duplicity.
He believed Frank Brennan and Frank Brennan Taxation Consultants Ltd, both named as defendants yesterday, may be about to pay funds on the liquidation of these companies to Mr Sweeney.
Mr Justice Edwards adjourned the matter until next week.
