The Belfast trial of Mr Finbarr Ross (54) yesterday heard questions raised over the conduct of a leading Dublin barrister during the liquidation of Mr Ross's Gibraltar-registered investment company 16 years ago.
The liquidator of International Investments Ltd (IIL) was challenged in Belfast Crown Court about the alleged activities of Mr Colm Allen after the firm collapsed in 1984, owing depositors £7 million sterling (€11.2 million).
Mr James Galliano, who was responsible for realising the assets of the offshore company between September 1984 and November 1991, was in the witness box on the 12th day of the trial of Mr Ross.
The Cork man denies five charges of falsely procuring deposits for the firm and 36 of false accounting between 1983 and 1984.
The court has already heard evidence that Mr Allen - now a Senior Counsel in the Republic - was chairman of a five-member committee of inspection appointed to work alongside Mr Galliano.
The jury of six women and five men has also heard that, in July 1984, Mr Allen represented Mr Frank Murray in the High Court in Dublin, when he successfully fought an attempt by Mr Galliano's predecessor to freeze his assets. At the time, Mr Murray denied in an affidavit having any involvement in the management of IIL. Mr Ross's defence team, however, alleges Mr Murray played a central role in the running of the company.
Under cross-examination from defence lawyer Mr Arthur Harvey QC, Mr Galliano confirmed that Mr Murray borrowed money from IIL and owed it £27,000, money that was never recovered.
Asking Mr Galliano about Mr Allen, Mr Harvey said: "A man who is chairman of a committee of inspection on behalf of depositors has gone into court on behalf of a debtor to International Investments (and a man who had, you believe, a major influence with International Investments) and said he had absolutely nothing whatsoever to do with this company.
"Do you think that is a satisfactory position for a chairman of a committee of inspection?"
Mr Galliano replied: "He probably had his reasons for doing so. It happened before I was appointed."
Later, Mr Galliano agreed with Mr Harvey that he had a "number of significant handicaps" in the liquidation, simply by being based in Gibraltar.
"At least one of them was that you were dependent upon the individuals who were your agents," Mr Harvey said.
"What you did as liquidator was seek to employ individuals who, as far as you were concerned, were professional people.
"If you accept professional people, you accept their integrity and honesty. Therefore, to a large extent, in accepting that, you place yourself in their hands. "What I suggest to you, unfortunately, Mr Galliano, [is that] the persons in whom you placed your faith behaved less than honourably during the course of this liquidation."
Mr Galliano replied: "I don't think I should comment on that."
The trial continues on Monday.
