The offshore company which had £1.9 million (€2.41 million) moved from its account with MMI Stockbrokers prior to that company going into liquidation has been invited to attend the High Court next week in a hearing sought by the liquidator, Mr Tom Kavanagh.
Ms Justice Laffoy yesterday set Wednesday next as the date for the hearing of an application for direction sought by Mr Kavanagh. The approach to the courts may lead to the dropping of proceedings against seven former directors of the stockbroking firm.
In October of last year Mr Kavanagh was granted permission by the High Court to initiate proceedings for misappropriation of funds and fraud against the directors. The directors rejected the allegations and called for an early hearing of the case.
If the proceedings are now dropped at the direction of Ms Justice Laffoy, then a further hearing will be held to decide who should bear the costs.
Counsel for the liquidator yesterday sought the hearing for direction after receipt of a letter in January from Cater Allen, the Jersey-based company which had £1.9 million taken from its MMI Stockbrokers' account. In the letter the company informed Mr Kavanagh that it was satisfied there had been no misappropriation of funds and no fraud.
It also said that, while it was not stating it would not appear in any proceedings which might be taken by Mr Kavanagh against the former directors, it would not be giving evidence which would be of benefit to him.
The Central Bank and the Investor Compensation Company Ltd have been put on notice for next Wednesday's hearing but it will not involve counsel for the directors. At yesterday's hearings counsel for the defendants said they wanted a hearing as early as possible, as they were concerned for their reputations.
In his original approach to the High Court Mr Kavanagh said some £1 million of the £1.9 million which had been taken from the Cater Allen account had been lodged to accounts in the names of directors Mr Oisin Fanning, Forenaughts House, Naas, Co Kildare, and Mr John Curran, of Kingsley Mews, Raglan Road, Dublin 4, or persons linked to them.
He also said that Cater Allen, when told of the transactions, had said it had not received the funds and intended to sue for negligence. It is not known who owned the funds placed with MMI Stockbrokers through Cater Allen.
Cater Allen is part of the Abbey National group. Efforts to obtain a comment from the Jersey firm have not been successful.
