A retired chartered accountant who was criticised in the Ansbacher inspectors' report on illegal off-shore accounts has been disqualified, on grounds of unfitness, from involvement in the management of any company for five years.
In the High Court yesterday, Mr Justice Brian McGovern issued the disqualification order against John J (Jack) Stakelum after finding the evidence established Mr Stakelum had engaged "in a calculated way" in activities which facilitated tax evasion and had used an elaborate scheme to conceal monies from the Revenue authorities.
Mr Stakelum went so far as to destroy all records when he retired in 1998, the judge said. He "simply did not accept" that Mr Stakelum, as a chartered accountant, was unaware of the implications of this.
On that ground alone, Mr Stakelum's conduct displayed a lack of commercial probity, he found.
In addition to the requirement that conduct complained of must display a lack of commercial probity before a person may be disqualified, a deterrent element may also be necessary in certain circumstances in deciding whether to disqualify, the judge said.
In this case, there was evidence that Mr Stakelum had engaged in secretive conduct to facilitate tax evasion. He was satisfied the evidence established that Mr Stakelum was unfit to be concerned in the management of a company.
The disqualification order was sought by the Director of Corporate Enforcement arising from the inspectors' report on the affairs of Ansbacher (Cayman) Ltd and related matters from 1971 to 1999.
The inspectors found evidence tending to show that the affairs of Ansbacher were conducted with intent to defraud the Revenue and that Ansbacher may have committed a number of criminal offences, including conspiracy to defraud.
They concluded that Mr Stakelum gave assistance, but not "knowing assistance", to Ansbacher in carrying out its Irish business.
The inspectors found that Mr Stakelum had provided a deposit-taking service, that some deposits were held offshore, that he provided a withdrawal service in Ireland, made use of a non-interest bearing account to hide that business from the Revenue and that the service was carried out in secrecy. The inspectors concluded that Mr Stakelum, acting through Clyde Enterprises (formerly Business Enterprises) operated a current account in an AIB branch which did not attract interest.
When he received an Irish pounds deposit from a client, he lodged it into the Clyde account where it was incorporated into a float of funds until another client wished to withdraw money from an offshore account.
Mr Stakelum would give funds to the late accountant Des Traynor who moved them offshore. The withdrawal would then be funded out of the float. The inspectors found evidence tending to show Mr Stakelum that provided a mechanism whereby Irish residents could withdraw their offshore funds here and concluded that he carried out that business with intend to defraud the Revenue.
Mr Justice McGovern rejected arguments that because section 160 of the Companies Act came into effect on August 1st, 1991, the court could not take account of conduct before that date. In any event, he was satisfied there was evidence that at least some of Mr Stakelum's criticised activities occurred after August 1991.
He also rejected arguments that because the activities complained of occurred a long time ago and Mr Stakelum had not benefited from them, is retired and no longer engaged in business, the court should not make a disqualification order.
