Solicitor denies 'bizarre dealing'

A SOLICITOR has denied confirming he was to be paid €150,000 for entering into “dummy” contracts for the onward sale of lands in Co Offaly at the centre of a “scam” allegedly driven by former Fianna Fáil councillor Gerard Killally.

In the Commercial Court yesterday, Jeremy Doyle, a partner in Doyle Hanlon Solicitors, Mountjoy Square, Dublin, rejected solicitor Hugh Millar’s account of a phone conversation of January 17th last between the two men concerning the alleged “dummy” contracts, which were never to be performed. Mr Millar said his account of the conversation was accurate.

Mr Doyle also denied suggestions of “bizarre” dealings by himself and his firm concerning contracts relating to the lands at Mount Lucas, Daingean.

He was in court arising from developments in the continuing action in which several investors are suing Mr Killally; solicitors Burke Co, Walkinstown, Dublin; various alleged advisers, some of whom invested in the same deal; and others.

The investors claim Mr Killally was behind a scheme under which 33 acres at Mount Lucas were sold to them for €10.6 million in May 2007 when, on the same day but unknown to them, Mr Killally acquired the lands for €4.7 million via a company.

The investors claim they relied on representations by Mr Killally and others that there was €4.5 million in unconditional contracts for onward sale of a number of sites on the lands, thereby reducing their exposure, including to a €6.3 million loan from the EBS to help acquire the lands.

The alleged sell-on contracts have not been performed and the investors argue they were bogus.

Mark Connaughton SC, for Burke Co, put to Mr Doyle yesterday that Mr Millar’s account of their phone conversations on January 17th last was accurate and meant Mr Doyle agreed to accept a “bung” of €150,000 on behalf of Mr Killally to enter into contracts for the onward sale of some of the Mount Lucas lands on the basis these would never be enforced.

Mr Doyle disputed Mr Millar’s account; when they were speaking, he felt he was “getting hostile”.

Mr Connaughton later put it to Mr Doyle that his file on Mount Lucas showed he signed a contract to buy lands from Mount Lucas Business Campus, represented by Burke Co, for €3 million on April 17th, 2010, and, on the same day, he signed another contract to sell on the same lands to Mr Killally, represented by a different firm of solicitors, for €3.15 million.

Mr Doyle rejected a suggestion that these dealings were “bizarre”. He also said he had not dealt with an allegedly similar contract involving his firm related to the Mount Lucas lands.

The case resumes on Tuesday.