A retired farmer being sued for libel by Fianna Fail TD Ms Beverley Cooper-Flynn told the High Court yesterday the purpose of a meeting with her in 1993, when she worked with National Irish Bank, was to invest "hot money".
At that meeting, Mr James Howard said, he had invested some £80,000, which he had not declared to the Revenue Commissioners, in a CMI personal portfolio policy. Afterwards, he became "uneasy" about what he had done.
When he telephoned Ms Cooper-Flynn two days later to say he wanted to take back the money, and that the tax amnesty was coming, she had said, "we don't do that" and there was no need to give the Government 15 per cent. Yesterday was the 14th day of the Co Mayo TD's libel action against RTE, journalist Charlie Bird and Mr Howard. She claims words used in broadcasts in June/July 1998 meant she had instigated a scheme to evade the lawful payment of tax. The defendants deny libel.
In 1983, when he was diagnosed with diabetes and high blood pressure, Mr Howard said he was unable to work and realised he would not pass a medical to take out a pension. He "laid by" some of his money in an account hidden from the Revenue.
In August 1987, he opened an account in NIB's Balbriggan branch. He would take some of his profit from buying and selling cattle and "put it by" into one account and put the rest into his farming account. He knew he had to do something for himself and his wife.
From the 1950s onwards, his shareholding in Premier Dairies had built up. In 1990, Premier Dairies was taken over by Waterford Co-op and he received £71,000 or £73,000. He paid £28,000 of that to the Revenue and banked the remainder in NIB Balbriggan.
About March 1990 he got a phone call from "Beverley Flynn", who said she would like to talk to him about the dairy shares and investing the money. Two or three weeks later, she came to his house. He said he was not interested as he was going to invest £80,000 in apartments in Parnell Street, Dublin, which he did.
Funds he was not telling the Revenue about continued to be "put aside" in NIB Balbriggan. By spring 1993, the money had built up to about £74,000.
A manager asked him about investing that money and said he would get him a financial adviser - "the best adviser in the country, a daughter of P.Flynn". Later, Beverley Cooper-Flynn phoned and he met her in NIB Balbriggan. She said: "We have to make this snappy. I'm going up the country, I'm late as it is."
The purpose of the meeting was to invest "the hot money", he said. Ms Cooper-Flynn said she was putting the money into a trust for him and his family and produced papers. He signed the documents without reading them.
He first met Patricia Roche (another NIB adviser) in late 1993 when she came to him about taking out insurance relating to inheritance. This was about five weeks after he had spoken to Ms Cooper-Flynn in relation to the amnesty. Ms Roche was not similar in appearance to Ms Cooper-Flynn and he could not have mixed them up. In January/February 1998, he became aware of concern about CMI policies. He went to an NIB manager. He was upset because this was the money he had "set aside" for his old age. In May 1998 he saw a lady from Cavan or Monaghan on the TV in connection with the sale of a CMI policy. She was very distressed.
He rang RTE, talked to Mr Bird and gave his name and address. They arranged to meet in a pub in Gormanston, Co Meath. He told Mr Bird all that happened and agreed to give him an interview.
The hearing continues today.