ACC claims plan to defraud behind property transfer

ACC BANK has claimed two men who consented earlier this year to €3.2 million judgment orders in favour of the bank against them over unpaid property and development loans have sought to defraud the bank by transferring their interest in properties to their wives.

The bank claims the properties were transferred by Martin Fox and Gareth Duffy last June after it had initiated proceedings.

In the case of Mr Fox, ACC alleges his interest in properties in Co Galway and Co Mayo was transferred to his wife four days before he consented to judgment in the €3.2 million sum. The bank claims Mr Duffy transferred his interest in property in Co Galway to his wife on June 15th last, after the bank had initiated its action and one day after judgment was entered against him.

Mr Fox and Mr Duffy, representing themselves, had told Mr Justice Peter Kelly last June they could not afford solicitors and were not opposing the bank’s summary judgment application as they had received the loans from ACC to purchase a development site near Athenry, Co Galway.

Mr Fox, Moyvilla, Oranmore, Co Galway, said they went into development with no debts and expecting to repay their loans in full. Had ACC been a bit more lenient with them, he believed they could have substantially reduced the debt owed, he said.

They had an “exceptionally nice” property on the site of the new Galway-Dublin road but ACC moved against them just months after that road opened,” he said.

If it had waited and given them a chance to try to sell, “perhaps we could have walked away a bit happier”.

Mr Duffy, Tuam, Co Galway, said their hands were tied in terms of ability to repay. ACC’s claim arose from loans advanced to the men from 2006 to purchase a development site near Athenry. It claimed the loans expired in May 2009 and demanded repayment last February when it also appointed a receiver over the lands.

ACC last month initiated fresh proceedings in the High Court against Mr Fox and Mr Duffy and their wives, respectively Siobhán McAndrew, and Kathleen Howley. Yesterday, the bank’s motion to transfer that case to the Commercial Court was struck out because of issues with service of documents on the defendants.

In its action, ACC is seeking a declaration that the voluntary transfer on June 10th last of property in Co Galway and Co Mayo by Mr Fox to Ms McAndrew was made with the intention of defrauding the bank. It wants an order deeming the transfer void.

The bank is also seeking damages.