A Cork-based broker has been summoned to a disciplinary hearing of the Irish Brokers Association following allegations that certain funds placed with him by investors are missing. The broker, Mr Andrew Casey, trades as Andrew Casey Life & Pensions at Patrick Street, Cork.
The Irish Brokers Association has appealed to anyone with concerns about their funds to contact the Irish Compensation Company Limited (ICCL).
The allegations came to light after a couple became concerned about a £28,500 investment they believed they had invested in Irish Life through Mr Casey. They secured an injunction against the broker in Cork Circuit Court on Friday after Irish Life confirmed it had no record of the funds. Their barrister, Mr Sean Lynch, told the court the documents in question appeared to have been forged. Mr Justice John Clifford granted an order preventing Mr Casey from disposing of assets that would leave him with less than £35,000 (€44,000).
Meanwhile, a second allegation has been made by a man who lodged about £30,000 with the broker to be invested in Irish Permanent. The IBA was informed about this allegation and the funds are understood not to have reached the Irish Permanent.
Irish Life & Permanent cancelled its agency with Mr Casey last Thursday after it confirmed to the couple, Mr Liam Draighneain and Ms Ide Ui Draighneain, that the funds had not been received by the company. An Irish Life & Permanent spokesman said it became concerned about what appeared to be fraudulent behaviour by the broker last week and had taken steps to inform the relevant authorities, including the Garda Fraud Squad.
Another investor contacted the IBA at the weekend about funds but these were found to be in order.
Meanwhile, the ICCL has begun to assemble a list of the broker's clients and will shortly write to them to appraise them of the facts and address any concerns.
The ICCL was established under the 1998 Investment Compensation Act to compensate eligible investors where funds are misappropriated. Under the provisions of the act, victims are entitled to €20,000 (£15,500) or
90 per cent of the losses, whichever is the lesser. It covers all investment firms, stockbrokers, credit unions and investment or insurance intermediaries.
Notices will also be placed in the national and regional newspapers to inform clients about the investigation and inviting them to contact the ICCL.
