Cork stockbroker on €5.8m fraud charge

A former junior partner in the collapsed Cork stockbroking firm W&R Morrogh, Mr Stephen Pearson, was charged with fraud and other offences involving €5.8 million when he was brought before the District Court in Dublin yesterday.

Mr Pearson, with an address in North Esk, Glanmire, Cork, was charged with 47 offences including fraudulent conversion, false pretences, and the forgery of documents, including share transfer forms, under the larceny and forgery acts. The charges relate to the period 1995 to April 2001.

Mr Pearson was remanded on bail until September 23rd, when a book of evidence is to be presented. He applied for legal aid on the basis that he was unemployed and had no assets other than the family home.

Det Sgt Denis Heneghan, of the Garda Bureau of Fraud Investigation, told Judge Miriam Malone that he had arrested Mr Pearson on Chancery Street, Dublin, at 9.40 am and conveyed him to the Bridewell Garda Station.

He said Mr Pearson was charged with the charges as set out in the 47 charge sheets presented to the court. After caution and in relation to each charge, Mr Pearson said he had nothing to say.

Asked by the judge about bail conditions, Det Sgt Heneghan said there were 47 charges and the amount alleged as being lost was €5.8 million.

Mr Pearson's solicitor, Mr Tony Hanahoe, said his client had been aware for the past two years that the charges were pending and had been in contact with the Garda during that period and had made himself available. Det Sgt Heneghan agreed that this was the case.

Judge Malone was told that an independent surety of €15,000 was available, with €5,000 in cash, from Mr Pearson's brother. She was also asked that the case be remanded to a Dublin as against a Cork court.

Judge Malone said that, as well as bail and an independent surety, she would require that Mr Pearson reside at all times at Glanmire and that he surrender his passport to Det Sgt Heneghan. She said the authorities should be informed that no duplicate passport should be issued to Mr Pearson.

Mr Roger Pearson, of Goggin, Bandon, Co Cork, handed documentation to Judge Malone to show he was worth the amount of the surety, including share certificates. However, the judge was unhappy with the share certificates presented.

She said the price of shares could go up or down. She did not wish to be difficult but the court needed something that could be "seized forthwith".

The court adjourned for lunch and, in the afternoon, another of Mr Pearson's siblings made an alternative surety proposal. Ms Daphne Pearson, of Dundrum, Dublin, handed over bank documentation in relation to the surety.

Mr Hanahoe said he wished to apply for legal aid for Mr Pearson, who was unemployed and had no assets other than the family home.

Judge Malone ruled that a statement of means should be produced prior to the next hearing so it could be verified by the Garda. If it was the case that legal aid was required, authorisation could be backdated to yesterday.

Among those present in court for the hearing was Mr Alec Morrogh, the former senior partner in the now collapsed firm.