Counsel for Mr Oisin Fanning, one of the directors of Money Markets International (MMI) Stockbrokers, claimed in the High Court yesterday that a Jersey company, Cater Allen, was satisfied there had been no misappropriation of funds and no fraud.
Mr Mark Sanfey told Mr Justice O'Sullivan that Cater Allen was not saying it would not appear for proceedings being taken by the liquidator against the MMI directors but if it did it would not be giving evidence which would benefit the liquidator.
The court heard argument on behalf of the liquidator, Mr Tom Kavanagh, and on behalf of the directors in relation to a letter sent by Cater Allen's solicitors last week which the liquidator admitted had implications for an action for damages he has issued against MMI directors.
Mr Kavanagh has alleged MMI directors misappropriated more than £1.9 million which was said to have been in an account in Cater Allen.
Earlier hearings were told the books and records of MMI purported to show payments to Cater Allen but the persons shown to get credit were in certain cases MMI directors Mr Oisin Fanning of Forenaughts House, Forenaughts, Naas, Co Kildare, and Mr John Curran, of Kingsley Mews, Raglan Road, Ballsbridge, Dublin.
Mr Fanning, Mr Curran and the other directors dispute Mr Kavanagh's claims.
During earlier hearings the court was told Mr Kavanagh was concerned that Cater Allen held a total of £1.9 million to the credit of MMI and was a large debtor, but the Jersey company was denying it ever received this money. Cater Allen's response was that it intended to sue MMI for the negligent operation of the discretionary account.
At yesterday's hearing, Mr Bill Shipsey SC, for the liquidator, said the Cater Allen letter did not answer the questions which had been posed by Mr Kavanagh in a letter sent on January 24th and raised more questions than it answered.
Solicitors for Mr Kavanagh had drafted a further letter to Cater Allen seeking clarification, he said. Mr Sanfey said the letter from Cater Allen said it would not co-operate; that Cater Allen was satisfied there had been no misappropriation of funds and there had been no fraud. In those circumstances, Cater Allen was not saying it would not turn up (for the liquidator's proceedings) but was saying that if it did turn up it would not be giving evidence beneficial to the liquidator.
Mr Shipsey said the point had to be made that the plaintiff in the action was not Cater Allen; the case was brought by MMI in liquidation. It was the clients and MMI who had suffered. Nowhere was the case made that there was authorisation by Cater Allen for what occurred.
Mr Justice O'Sullivan adjourned the hearing to Friday when he will give judgment in proceedings brought by the liquidator, who is seeking answers to a list of questions submitted to the directors.
