Former Formula One driver Eddie Irvine was advised not to invest any more money in two loss-making Dublin pubs, a tribunal heard yesterday.
Irvine (39), from Co Down, had already invested €635,000 (€443,000) in Cocoon on Grafton Street and O'Reilly's on Tara Street, both of which were owned by his friend, John Foley.
At the Employment Appeals Tribunal (EAT) in Dublin, retired accountant Charles Watchman said he had told Irvine that he should not commit any further to the venture.
"I advised him to write off the funds already advanced," he said.
However, Irvine went ahead to invest a further €635,000 (£443,000) and later took a 50 per cent stake in the holding company when the money was not paid back.
The tribunal heard his business partner, Mr Foley, was dismissed for cashing personal cheques in their bars without the necessary funds and for paying off personal debts with company money.
Mr Foley is taking a case against Calview Investments, the owners of Cocoon, for unfair dismissal.
Mr Watchman told the tribunal that his London-based accounting firm began working with Irvine on his UK-based tax and investment affairs.
"Mr Irvine was a Formula One racing driver who travelled all over the world.
"He was based in Miami, if he based himself anywhere," he said.
Mr Watchman said that when Mr Foley proposed that Irvine take over Calview, it had been unable to pay the rent for Cocoon's high-profile location in Dublin's city centre and also owed money to creditors.
"At the end of 2001, I really thought the business had no value."
However, he said Irvine's decision to invest more money in the company was a mistake often made by people inexperienced in finance or investment.
He said the driver wanted to protect the €635,000 (£443,000) he had already invested rather than recognise that it had been lost.
"A lot of people do that. It's not uncommon," he said. He added that another reason was Irvine's friendship with Mr Foley.
The case at the Employment Appeals Tribunal continues.