Liquidator claims Sloyan family defrauded own firm

A liquidator who claims members of a family perpetrated a fraud against their own development firm before its liquidation wants the company to be joined as a party to a legal action over the matter, the Commercial Court has heard.

Aidan Garcia, who is the liquidator of Sloyan Brothers building/development firm, claims family members transferred a company property worth €4 million to themselves for no charge and left an unpaid tax bill of €4.4 million.

Mr Garcia claims the property at Abbeyglen, Johnstown Road, Cabinteely, Dublin 18, where 44 apartments were built, was transferred to company shareholders Joseph, Seamus and Sean Sloyan and Catherine Doherty, and also to Maura Sloyan and Clare Sloyan-Roche, in March 2006.

The firm went into liquidation in 2007.

Mr Garcia, of Copsey Murray chartered accountants, claims those members never paid the Sloyan Brothers' company for the land. He alleges AIB knew the company had not been paid for the land when the bank sanctioned a mortgage for the lands to be repaid once the apartments were built.

Repaid

AIB says it lent the money to the family members, not to the company, while the Sloyans contend €4 million was repaid to the company for the lands.

Mr Garcia is suing the six members and AIB, seeking the return to the company of either the Abbeyglen asset or its estimated value of €8 million.

The Sloyans and AIB knew the mortgage monies ostensibly paid to the company to purchase Abbeyglen “were in reality advanced to build apartments on the lands”, he claims.

AIB sought to take security over the land and the Sloyans appear to have hoped they would profit from the differential between the value of the units and what was owed to AIB, he alleges.