AN ELDERLY couple who lost their life savings in what a judge described as a “Celtic Tiger tragedy” have secured judgment for €1.25 million against an accountant, a financial adviser and a property development firm.
Teresa Dillon (84) and her husband Patrick, since deceased, Gort na Móna Drive, Foxrock, Dublin, lost out when the investment of their entire life savings in a housing development in the midlands became “utterly worthless”.
The president of the High Court, Mr Justice Nicholas Kearns, said the case could “only be described as a Celtic Tiger tragedy”.
Mr Justice Kearns granted judgment yesterday for €1.25 million, plus interest, against auditor and accountant Paschal Bergin of Bergin and Associates, Village Craft Centre, Foxrock, Dublin; Patrick Muldowney, a financial adviser who practised under the trading name Muldowney Financial Services, Largo House, Rathmines Road Lower, Dublin, and Event Horizon Ltd, a property development company with offices at Ulysses House, Foley Street, Dublin.
The judge said he had no hesitation in holding Mr Bergin and Mr Muldowney negligent in this matter. While he did not believe there was a deliberate attempt to defraud, there was negligence “of a high order”.
It would not be just or appropriate to apportion contributory negligence to a couple in their 80s who had long since retired from business and wanted to live out their days in some degree of financial security, he also found.
The Dillons had brought proceedings seeking return of the investment funds after a housing development in the midlands failed.
The judge said the couple had been successful in business and had invested £960,000 in an Isle of Man account due to mature at the end of 2006. The couple had forgotten where they invested the money and Mr Bergin had helped them recover it from the Isle of Man account, he said.
In their action, the couple had claimed Mr Bergin advised their funds be invested through an entity described as “Muldowney Financial” where the return was stated as being 15 per cent over two years with the capital and return on investment guaranteed.
In a letter to the Dillons, it was claimed Mr Bergin said another comfort he could give them was that he had personally invested with Muldowney Financial and had referred a number of people to them with confidence.
Mr Bergin denied he had acted as a financial adviser and said he had no involvement in the further investment made by the Dillons.
It was claimed the Dillons were introduced to Mr Muldowney in Mr Bergin’s offices in January 2007. Mr Muldowney, they claimed, advised them to invest in Event Horizon Ltd. They invested €1.25 million and got a share certificate.
Mr Muldowney had denied he offered any financial advice to the Dillons.
Mr Justice Kearns found Mr Bergin had steered the Dillons towards investing in Event Horizon.
He said he was satisfied there was a close and intimate connection with Event Horizon and that the Dillons were given absolutely no information on this.