Liquidator refuses to regret action over broker

A former director of MMI Stockbrokers Ltd (in liquidation), Mr John Curran, is seeking "a statement of regret" from the liquidator of the company regarding the consequences for Mr Curran and his family of the liquidator's decision to take an action, now withdrawn, alleging fraud against seven former directors of the company.

However, no such statement is forthcoming from the liquidator, Mr Tom Kavanagh, the High Court was told yesterday.

Mr Kavanagh, on behalf of the company, had instituted proceedings alleging fraud against former MMI directors Mr Oisin Fanning, Mr John Curran, Mr Paul Boucher, Mr Colm O'Reilly, Mr Tim Murphy, Mr Cian Kelly and Mr Peter O'Byrne in October last. The defendants strongly denied the allegations.

The action was due for hearing on March 21st but the liquidator sought an adjournment following what the liquidator alleged was a change of attitude towards the matter by Jersey-based Cater Allen Nominees Ltd, a client of MMI.

The liquidator had alleged that sums totalling some £1.9 million (#2.4 million) were debited in four transactions without authorisation from a Cater Allen account and another held by IBI Nominees Limited and credited to the benefit of directors Mr Oisin Fannign and John Curran - and some 20 others associated with them.

The defendants denied the claims, contended Cater Allen itself had never alleged fraud and denied there was any change of attitude on Cater Allen's part.

Refusing the adjournment application earlier this month, Mr Justice Kelly agreed there was no change of attitude on Cater Allen's part and stated that, whatever differences it had with the defendants, it had not characterised those as fraudulent.

Following the refusal to adjourn, the liquidator withdrew the proceedings and the matter was adjourned to yesterday to allow Mr Fanning and Mr Curran decide whether to seek damages from the liquidator. All the defendants have claimed they were damaged by the liquidator's allegations and the extensive publicity accorded them. Yesterday, Mr Michael Collins SC, with Mr Mark Sanfey, for Mr Fanning, said his client would not be seeking damages.

While Mr Fanning had sustained a lot of damage, the action was now discontinued and Mr Fanning had been vindicated to a large extent, counsel said. If Mr Fanning pursued an action for damages, and was successful, the damages would have to be paid at the expense of the creditors of MMI. Mr Fanning had no wish to do that and was content with the situation as it stood.

Mr Brian O'Moore SC, for Mr Curran, said his client was also not anxious to test the MMI creditors with a claim but Mr Curran was seeking a statement of regret from the liquidator regarding what had happened to him and his family. Mr O'Moore said he understood such a statement was not forthcoming and, in those circumstances, he wished to take further instructions.

Counsel said Mr Curran's name has been vindicated but a statement of regret would banish "any lingering doubts".

Mr Justice Kelly adjourned the matter to Tuesday next to allow Mr O'Moore take instructions.