Alan Hynes ‘struggling to explain’ what happened to investors’ money

Wexford accountant Alan Hynes has said he never misappropriated or diverted funds invested in property projects with which he was associated.

Mr Hynes (45) said he was “struggling to explain” how the full €8 million that had been put forward by investors for a project in Dundrum, had not shown up in accounts.

He was responding to questions from PJ McDowell, chairman of a tribunal investigating allegations against Mr Hynes made to the Chartered Accountants’ Regulatory Board (Carp), about an apparent shortfall of €1.4 million in the accounts associated with the deal.

Mr Hynes, speaking on the eight day of the tribunal, said he needed access to information about client accounts operated by Seamus Maguire & Co solicitors, who acted in some of the schemes being investigated by the tribunal, in order to fully resolve the issue. However, he said, he was not getting cooperation and was initiating legal action.

Mr McDowell pointed out that the complaints had first been made against Mr Hynes five years ago. Mr Hynes said he had asked for the information years ago.

At one stage Mr Hynes said he was resisting the complaints made against him. “I value my qualification and I don’t want to get hammered,” he said.

Responding to complaints that he had used powers of attorney to give personal guarantees to banks on behalf of investors, without their knowlege, Mr Hynes said such powers were first used by Seamus Maguire senior, of Seamus Maguire & Co, to create certain capped guarantees for investors in a project in Dundrum, using powers of attorney granted to Mr Maguire.

He said he was away at the time and did not have a role. Subsequent guarantees, made out to him, were used when taking out loans but did not increase the exposure of the people affected.

He said the idea of using powers of attorney was first suggested by Mr Maguire, because of the number of investors involved in the Dundrum deal, and he had circulated the suggestion by email to the 39 individuals involved.

He agreed that he had been involved in the negotiation of the loans and that most of the investors were clients of his accountancy practice.

The tribunal heard that a€3 million loan issued by AIB in 2007 to allow Mr Hynes and his wife, Noreen, pay off a loan to Anglo Irish Bank, was instead used to purchase a part involvement in a development project in Dalkey.

AIB has since secured a €3 million judgment against Mr Hynes and his wife Noreen.

The funds were issued by AIB to Seamus Maguire & Co solicitors, and the bank has successfully sued the firm for a breach of undertaking, because of how the funds were used. Mr Hynes said he did not have a role in “that movement of the money”.

Mr Hynes said his involvement in the property schemes was via a company he owned, Tuskar Property Holdings Ltd. He said that initially he did not expect this company to be paid for its services. Mr McDowell asked why the company was doing all the work it was doing on profitable projects, and not expecting to be paid. Mr Hynes said his wife was one of the investors, and would benefit. Later, when circumstances changed, and it “looked like we were being blamed for the collapse,” the idea of Tuskar Property Holdings being paid, was introduced. There had been no formal agreement with the investors about this. Invoices issued to the 39 investors in 2010 were for €400,000 plus VAT.

The hearing continues today.