A businesswoman has told the High Court that Ms Beverley Cooper-Flynn had told her a CMI personal portfolio account was "more or less completely watertight" and not even the Revenue would gain access to it.
Ms Joy Hawe was the second witness called by the defence in the action by Ms Cooper-Flynn alleging libel against RTE; journalist Mr Charlie Bird, and a re tired farmer, Mr James Howard.
The Mayo Fianna Fail TD claims she was libelled in broadcasts in June/July 1998 and words used meant she had instigated a scheme intended as a means to evade lawful tax payment. The defence denies the claim.
In court yesterday, Ms Hawe (52), Dublin Road, Monaghan, told Mr John Trainor SC, for RTE, she had businesses in Monaghan and Enniskillen for about 35 years. In 1992, she spent four or five days a week in Enniskillen and the other two days in Monaghan. She had an account in Ulster Bank, Lisnaskea, Co Fermanagh, and one in National Irish Bank, Monaghan.
She had had two building society accounts in Enniskillen. She paid tax but the interest earned in the building society accounts was not declared. She first met Ms Cooper-Flynn in the summer of 1992. She had been asked in the Monaghan NIB branch if she would like to meet a financial adviser. She was told Ms Cooper-Flynn had a famous politician father and she "thought it might be fun". She did not know who Ms Cooper-Flynn's father was but she found out.
She said Ms Cooper-Flynn told her about an investment known by a number only. She said the account was in an Isle of Man sterling account and her name would not be connected to it. She was told the money stayed in the Isle of Man and was taxed there.
She said when she asked about security and confidentiality, Ms Cooper-Flynn said it was more or less completely watertight and the Revenue would not gain access to it. The account was the CMI personal portfolio.
In September 1992, Ms Hawe's husband told her he was having an affair. She wanted to make sure her money was safe until things were sorted out. Mr Trainor showed documents related to two building society accounts and an amount of £84,630 sterling which was invested in the CMI Personal Portfolio. Ms Hawe agreed she signed a form to enter the CMI scheme regarding the two building society accounts about July 31st, 1992, and the accounts were closed later in 1992.
She met Ms Cooper-Flynn regarding the disappointing performance and the investment did better after that. Ms Cooper-Flynn had also arranged for her to withdraw £5,000. Ms Hawe said she retired on March 30th, 1998, her 50th birthday. She wanted to see Ms Cooper-Flynn regarding her investment but learned she was no longer with the bank.
On April 8th, 1998, she asked the bank about the policy and was told there was a problem. She got a letter from the Revenue Commissioners the following day. She had received no assistance from NIB. She later learned of an advertisement placed by RTE asking for persons who had invested in the CMI scheme to contact Charlie Bird. She did not know who Charlie Bird was and believed he was a politician. She lived in Enniskillen and did not watch RTE. She learned the CMI matter was of public record. Earlier, a businessman and farmer, Mr Patrick Duff, said he withdrew £98,000 in cash from a bank in Kells, Co Meath, after he sold land and brought the money in four stages to the NIB branch at Bailieboro, Co Cavan. This formed 50 per cent of an investment he had made with Ms Cooper-Flynn.
Cross-examined by Mr Garrett Cooney SC, for Ms Cooper-Flynn, Mr Duff (50) agreed the £98,000 was "perfectly legitimate money" which he had received for the sale of lands he owned in Kells. He said this "legitimate" money represented more than 50 per cent of a £168,000 investment he had made with her and the remainder was "undeclared" money.
Asked if he had told Ms Cooper-Flynn he had undeclared money, Mr Duff said she knew all about it, it was raised at the first meeting.
Mr Duff said he was in court because he had been subpoenaed to appear by RTE. He was one of approximately 30 investors suing NIB.
The hearing resumes on Tuesday.