Tony Taylor refused access to lodged cash by High Court

The High Court yesterday refused an application by former investment broker Mr Tony Taylor for the payout of part of £365,000 (€463,454), which was lodged into court following the sale of his Dublin home, in order to fund his defence to charges of fraud, forgery and obtaining money under false pretences.

However, the President of the High Court, Mr Justice Morris, gave Mr Taylor leave to re-apply for access to the monies in the event of his being refused legal aid by the District Court. Mr Taylor represented himself at yesterday's hearing.

Mr John O'Donnell, for the official liquidator of Taylor Asset Managers Limited and other companies in which Mr Taylor was involved, opposed any payout to Mr Taylor as did counsel for Allied Irish Banks.

Mr O'Donnell said civil proceedings in which the liquidator was seeking to have Mr Taylor made personally liable for debts of £1.7 million incurred by the Taylor companies, including a debt of £170,000 to the Society of St Vincent de Paul, stood adjourned pending the outcome of the criminal proceedings which were to be heard next October.

He said the liquidator would contend that Mr Taylor should be made personally liable for failing to keep proper books and records of the companies.

He said the companies ceased trading in 1996 and Mr Taylor disappeared. He was later found in England, had not contested extradition and returned voluntarily to Ireland in January to face criminal charges. National Irish Bank had a mortgage over Mr Taylor's home and after the premises were sold, and NIB took the monies due to it, there was some £365,000 left which was lodged in the High Court pending further order.

Mr Taylor had sought legal aid for the defence of the criminal proceedings and the District Court had indicated an application should be made to the High Court in relation to the monies lodged in court. The liquidator was opposing any payout. If Mr Taylor was found personally liable in the forthcoming civil proceedings against him, he could face a bill for £1.7 million. The liquidator was not acting just on his own behalf but on behalf of other creditors of the companies.

Counsel said there was a provision under the Companies Act where the High Court could find a company director personally liable for the company's debts if it found there was a failure to keep proper books and records. He said Mr Taylor had to date entered no defence to the civil proceedings.

Mr Taylor said the District Court had adjourned his legal aid application and indicated he should apply to the High Court for release of sufficient monies to conduct his defence. Mr Justice Morris said the £365,000 lodged in court may be in part the property of Mrs Taylor or Mr Taylor. There was a claim of £1.7 million by the official liquidator and a maximum claim for £30,000 by AIB. Against this was Mr Taylor's overwhelming right to a full and adequate defence in relation to the criminal charges against him.

The judge said he would advise the District Court he did not propose to make any sum available to Mr Taylor out of the monies for use for his defence. He did so in the belief the District judge would see fit to grant legal aid to Mr Taylor. If legal aid was refused, and it was entirely a matter for the District Court, Mr Taylor had liberty to re-apply to the High Court on notice to the liquidator, NIB and AIB.