More than £350,000 was transferred out of the State to a company in Britain which was used as a vehicle to effect a fraud against an Ulster Bank subsidiary, the High Court was told yesterday.
Mr Robert Hastings, counsel for Ulster Bank Commercial Services (UBCS), said preliminary investigations had shown the money trail in the fraud led to a company in Britain.
Last week UBCS secured an interim injunction against four men, Mr Niall Clarkin, Mr James Kenny, Mr Frank Donnelly and Mr Gerald Roche, and against The Label Centre (TLC), with an address at Canal Turn, Clondalkin Industrial Estate, Dublin.
The first three men were described as directors of TLC, while Mr Roche was named as company secretary.
Under the terms of the order, all the men were restrained from disposing of assets below £800,000.
At last week's hearing it was claimed a "massive" fraud was perpetrated on UBCS, with registered offices at George's Quay, Dublin, through an "elaborate but bogus" invoice system.
The alleged fraud, estimated to involve £770,000 to £1.7 million, was said to have fooled the auditors of TLC and of UBCS.
In court yesterday Mr Hastings said he wanted to join The Label Centre (UK) in the proceedings with the other defendants.
He also sought an order restraining TLC (UK) from reducing its assets below £350,000 sterling.
In an affidavit, Mr Anthony Duffy, client relations director with UBCS, said a business information search had shown Messrs Clerkin, Kenny and Donnelly were also directors of the British company, while Mr Roche was company secretary.
Substantial funds were transferred from TLC to TLC (UK) to facilitate the fraud through the invoice discount scheme, he said.
The preliminary figures involved were about £350,000 sterling, he added. Notwithstanding representations made by Messrs Clarkin and Roche that the British firm was not actively trading in the ordinary sense, Mr Duffy said the Clondalkin company transferred substantial money to it.
He believed the four defendants effectively controlled the British company and the Dublin company was used as a vehicle to put the fraud into effect.
Mr Hastings said the belief was that monies in the TLC (UK) were his client's and were obtained fraudulently.
Mr Justice O'Sullivan granted liberty to have the UK company joined as the sixth defendant.
He also made an order restraining it from reducing its funds below £350,000 sterling.
He also gave the bank an opportunity to seek next Monday interlocutory orders, orders continuing until the trial of the action.