A SOLICITOR has told the Commercial Court he told “lie after lie after lie” in relation to a land deal in Co Offaly which is the subject of a High Court inquiry over the whereabouts of €7 million loaned by a bank.
Solicitor John Duffy, of John Duffy Co, Solicitors, Main Street, Monasterevan, Co Kildare, who has received treatment in a psychiatric unit since issues concerning the deal came before the court, agreed yesterday with Mr Justice Peter Kelly that he had been involved in a “web of deceit”.
He said he had told “lie after lie after lie” in relation to the deal, described by the judge as an “elaborate fraud” on the Irish branch of Investec (UK) Ltd, which loaned the €7 million.
Mr Duffy said he had stopped practising as a solicitor on March 31st last and had got himself into “a terrible mess”. The entire matter had become “a complete and utter nightmare”.
Mr Duffy was giving evidence in an inquiry ordered by the judge aimed at establishing what happened to the €7 million loaned by Investec. The court has been told 55 acres of land at Kilbeggan, Tullamore, was bought by a company called French Furze Holdings Ltd for €8 million from JH Real Estate Ltd, a company owned by businessman Robert “Pino” Harris.
French Furze was set up by Mr Duffy on behalf of businessman Tony McAuliffe and his son, Dermot, from Furze, Co Kildare, to buy the land and then immediately resell it to a second company also controlled by Mr McAuliffe.
The second company, Conway Clarke Properties Ltd, was formed by Mr Duffy in the name of plant machinery mechanic Martin Conway, with Mr McAuliffe’s daughter, Sharon Clarke, holding a 20 per cent interest on behalf of the McAuliffe family.
The court heard the deal was based upon Mr McAuliffe buying the land, using Conway Clarke as the purchase vehicle, and then selling it quickly to another company for €18 million. Investec was to put up an €8 million loan which would be paid off straight away from the proceeds of the resale.
Mr Conway told the court he knew Mr McAuliffe socially. He was asked by him and Mr Duffy to act as purchaser, while Ms Clarke would be a co-director of Conway Clarke to look after the McAuliffe family interest. Ms Clarke said it was not until she was summoned to appear in court that she realised how serious matters were.
Mr Duffy said he had written a number of letters which were untrue, including that he had an approved purchaser for the land.
These letters were used to assure the bank that a €100,000 deposit had been paid through Mr Duffy’s client account for the lands, he said. This was the basis upon which Investec agreed to loan the McAuliffe company €8.82 million and the money was drawn down on March 6th, 2007.
When the quick resale failed to materialise, Mr Duffy said he continued writing untrue letters in an attempt to “stall” the bank. However, matters came to a head and French Furze was put into receivership last February, judgment of €7 million was entered against the McAuliffes and High Court proceedings were initiated. Mr Duffy said he came under enormous pressure during the deal and found it difficult to stop telling lies.
The hearing continues.