Cork developer denies diverting resort funds
A Cork developer who allegedly unlawfully diverted more than $13 million for his own benefit from $50 million paid towards the completion of a luxury resort in the Caribbean lost the run of himself using money for grandiose projects, it was claimed before the High Court yesterday.
It is claimed Pádraig O'Halloran (42) of Shippool, Innishannon, Co Cork, was looking at aircraft and had made payments towards a $1.5 million Falcon aircraft in the Caribbean as well as attempting to buy a racetrack in St Lucia.
Mr Justice Brian McGovern was also told that in one payment of $200,000, a reference was made to an allocation of $50,000 for a Halloween party.
It has been alleged that Mr O'Halloran misappropriated the funds and various payments were made by his company to Irish bank accounts - $1.6 million to his Irish accounts in 2009 and 2010 and $358,000 to the Irish account of his father, Donal O'Halloran, along with €120,000 and $72,000 to Weddings by Franc and €20,000 to Adare Manor.
The owners and operators of the luxury resort in Buccament Bay, St Vincent and the Grenadines, Harlequin Property SVG Ltd and Harlequin Hotels and Resorts Ltd, have brought an action claiming Mr O'Halloran also bought a property in Ireland as well as a range of other assets; properties and businesses in the Caribbean; a $1.5 million Falcon private aircraft; and other items of personal expenditure designed to support his lavish lifestyle.
Now Harlequin wants restitution, damages and compensation for alleged breach of fiduciary duty in relation to the alleged Irish payments and transfers to Irish accounts.
Mr O'Halloran has denied all the claims including the misappropriation of funds and unlawfully diverting $13.3 million for the Buccament Bay project to his own personal benefit.