Breifne O’Brien receiver hopes to gain $400,000 from US sale

A receiver appointed over certain assets of jailed fraudster Breifne O’Brien, whose creditors are owed some €12.8 million, is hoping to secure more than $400,000 (€358,000) from the sale of O’Brien’s interest in a US company, the Commercial Court has heard.

In the interim, Mr Justice Brian McGovern made orders permitting the receiver, solicitor Brian Quigley, to pay out to two creditors the net proceeds from a sum of $11,154 due to Mr O'Brien from an investment, plus a tax rebate due to Mr O'Brien for some €2,197 and $380 in relation to other shares.

The creditors are brothers Louis and Robert Dowley, who in January 2009 were granted judgment for some €3.013 million against O'Brien, of Kilmore, Monkstown Grove, Co Dublin, who is serving a seven-year sentence after admitting multiple charges of multi-million euro theft and deception totalling over €10 million between 2003 and 2008.

The Commercial Court previously heard creditors pursuing O’Brien in an effort to enforce their judgments had recovered sums totalling less than €500,000 by June 2014.

The seven judgment creditors have tried to recover their money via orders registering their judgments over all properties situated in Ireland which they are aware are owned by Mr O’Brien, solely or jointly, and have also secured orders relating to shares and other assets.

It was estimated a further €331,027 might be recovered under orders obtained from the English courts concerning a sale of company shares.

In January 2014, on the application of the Dowley brothers, with the agreement of all judgment creditors, Mr Quigley was appointed to receive O’Brien’s interest in certain assets, including shares and loan notes in two Irish companies, shares in West Street Holdings LLC, a limited liability company in Massachusetts, US, and O’Brien’s interest in Sig Cap First US partnership.

The court also made orders restraining O’Brien from disposing or dealing with his interests in those entities.

In a report to the Commercial Court this week, Mr Quigley said he had been advised the value of O’Brien’s interest in the two Irish companies was close to cost and neither company expected to make any distribution in the next two years.

When distributions do start, both companies had to first repay 10 and 12 per cent loan stock, of which O’Brien has none, and which total some €7.5 million, plus €2.6 million accrued interest, he was also advised.

Mr Quigley said he was also informed West Street Holdings LLC plans no distribution until at least 2017 and the value of the O’Brien investment was at least at par with the initial investment.

The Dowleys, with the agreement of the judgment creditors, were considering whether a sale of O’Brien’s interest in that company could be arranged and a co-investor had offered to purchase that for some $440,000, less an investment manager’s $12,000 arrangement fee.

Mr Quigley said he had no objection to such a transaction once certain conditions are met.

He had received some $11,554 due to O’Brien in relation to his interest in another US investment and expected a further distribution later this year, Mr Quigley added.