McFadden to be questioned on disclosure of assets

FINANCIER NIALL McFadden is to be cross-examined before the Commercial Court about his assets and liabilities as part of National Irish Bank’s efforts to enforce judgments for more than €15 million obtained against him.

The court heard a statement of affairs from Mr McFadden which lists his actual liabilities at €35 million and contingent liabilities at €50 million. NIB expressed concern yesterday that Mr McFadden had failed to disclose fully his financial position in the statement of affairs presented to the court earlier this month on foot of an order made last December. It sought an order requiring Mr McFadden to supply a supplemental statement of affairs and attend for cross-examination about that.

Rossa Fanning, for Mr McFadden, said a supplemental statement of affairs would be supplied within two weeks.

Mr Justice Peter Kelly said the material provided showed good grounds for saying Mr McFadden had not made the disclosure required. Mr McFadden would have to provide a full and detailed statement of his assets and liabilities, he said. If there was a continued failure to comply, the consequences would be “very serious”.

He also directed Mr McFadden should appear before the court on March 10th to be questioned and should produce all relevant books and records. NIB had complained that in his statement of affairs submitted on January 17th last, Mr McFadden had not explained how those liabilities arose and whether they comprised loans advanced to him personally.

NIB also said it appeared a balance of €12.4 million remained due to Anglo Irish Bank on foot of a judgment for €13.3 million against Mr McFadden. NIB said it wanted to know how any payment made to Anglo was funded.

The bank said Mr McFadden had sold his interest in a property in Galway to his wife, Leisa Benner, in 2009 and also sold two vehicles for €100,000 but had failed to explain what happened to the money.

Mr McFadden had failed to disclose the amounts received from his sale to Boundary Services Ltd of his equity interest in Boundary Radio Ltd, Boundary Management Ltd and three US-based entities.

NIB also complained Mr McFadden had not provided any information about his personal circumstances and whether he was working.

It believed his family home was located at Avoca Wood, Blackrock, Co Dublin, and that property was owned by Ms Benner. Mr McFadden had previously stated he was living at an address at St James’s Street, London, but had failed to disclose any interest in that property, the bank added.

NIB is also seeking information about any pensions of which Mr McFadden may be a beneficiary and also whether he continues to have any interest in two hotels, the LL Hotel and the Clarion Hotel at Dublin airport.