THE liquidator of the financial services company Taylor Asset Managers has been granted leave of the High Court to investigate off shore bank accounts relating to fees and commissions re directed to a related company within the six company Taylor Group.
The President of the High Court, Mr Justice Declan Costello, was told yesterday that fees and commissions, which Taylor Asset Managers (TAM) would have been entitled to deduct from investment returns for clients, were re directed to another company, Taylor Investment Group Ltd (TIG).
Mr John O'Donnell, counsel for the liquidator, Mr Patrick McSwiney, said Taylor Investment Group maintained accounts with the Anglo Irish Bank in Jersey in the Channel Islands and the Royal Bank of Canada in the Isle of Man.
Mr McSwiney was confirmed as official liquidator of Taylor Asset Managers and appointed provisional liquidator of Taylor Investment Group.
The liquidator was granted powers to open bank overdrafts and take whatever steps necessary to investigate the two companies with a view to protecting their assets and the interests of clients who had invested money with TAM.
Mr Justice Costello also ordered that Mr Tony Taylor, of Somerset, Anglesea Road, Dublin 4, and all directors of Taylor Asset Managers provide Mr McSwiney with statements of affairs of Taylor Asset Managers Ltd.
The court heard that TAM, of Clyde Road, Ballsbridge, Dublin 4, was insolvent to the tune of £155,618 and had debts of £241,710. Mr Justice Costello also heard that TAM clients' files totalling £840,150 had been deleted and that more than £706,000 remained untraced.
The application to have Mr McSwiney appointed official liquidator to Taylor Asset Managers was made on behalf of the Minister for Enterprise and Employment. It was supported by the Society of St Vincent de Paul and the company's former solicitors, both of whom are creditors.
Mr Donal O'Donnell, senior counsel for the Minister, said figures relating to debts of TAM and to the extent of its insolvency did not take into consideration monies invested by clients of the company.
Assistant Principal Officer Mr Philip Donegan said the Minister believed that TAM may be unable to meet its obligations to its clients and creditors. Other companies in the group included Taylor Integrated Planning Services Ltd (TIPS); Taylor In vestment Group Ltd (TIG); Mecagold Investments Ltd trading as Micropal Ireland; Rolyat Ltd (Rolyat); Taylor and Associates Financial Services Ltd; Integrated Taxation and Legal Solutions Ltd, and Taylor & Associates Life and Pensions Ltd.
Mr Donegan said that, according to the most recent information in the Companies Office, the directors of TAM were stated to be Mr Anthony Taylor, Mr Edward Hobbs, Mr Tom Carroll, Mr Gerard McCoy and Mr T.J. Lynch. However, the directors of TAM stated on the most recent letterhead of the company were Mr A.J. (Tony) Taylor, Mr T.J. Lynch, Mr G. O'Neill and Mr S. Ewing. It appeared that recent changes of directors of the company had not been registered in the Companies Office.
He said TAM, a member of the Irish Brokers Association (IBA) would accept monies from investors who wished to invest in funds operated in off shore financial centres such as Jersey and the Isle of Man. It carried on business as a deposit broker, placing funds on deposit in accounts in offshore financial, centres in return for commission.
Mr Donegan said difficulties regarding the activities of TAM first came to the attention of the Department on July 22nd in a phone call from Fidelity Investment Services Ltd in the UK. Fidelity had received a complaint from a client of TAM that his funds, which had been invested by TAM with Fidelity, had been misappropriated by TAM.
As a result of this, he and others met a Fidelity representative who said his company was the largest fund manager in the world and had been doing business through the Taylor Group of companies, including TAM, since 1989. He estimated the volume of its Irish business at $30 million.
Fidelity informed the Department it terminated its agreement with TAM in June 1996 for commercial reasons but an extension of time was granted until September 6th next. Fidelity had wanted to contact TAM's 300 clients and had sought their addresses.
Fidelity had given further details regarding a complaint made by a client of TAM and his wife to the effect that a cheque from Fidelity for £93,000 made payable to the client and his wife had not been received by them but had been exchanged, through Anglo Irish Bank, with £87,000 of the proceeds being lodged to an account held in Rolyat and £6,000 having been paid in cash.
Fidelity's investigations revealed that endorsements on the cheque did not match sample signatures which Fidelity held on file. Fidelity's clients had complained to the IBA on July 14th last. Fidelity terminated its agreement with TAM on July 19th last.
In an affidavit to the court, Mr Paddy McSwiney said that on September 26th, 1995, TIG had been struck off the Register of Companies for failing to make annual returns and applied to have it restored to the register before a petition for the winding up of the company could be presented.
Mr McSwiney said he believed TIG's sole function was to operate as a holding account for monies due to TAM and, for whatever reasons, fees and commissions due to TAM were paid into the bank accounts of TIG in Jersey and the Isle of Man and were sporadically drawn on. He believed £229,000 was due to TAM in respect of fees and commissions paid into TIG accounts.
He told the court that, in his opinion, TIG was insolvent and unable to pay its debts and he felt it would assist him in tracing and, where possible, protecting investors' funds if it was wound up. He wished to gain control of TIG's bank accounts.
Mr Justice Costello granted an order restoring TIG to the Companies' Register prior to appointing Mr McSwiney as its provisional liquidator
