Four company directors defrauded Ulster Bank Commercial Services Limited of almost £800,000 through an "elaborate but bogus"' invoice scheme, it was alleged at the High Court yesterday. One of the directors had said it was "hands up time" when confronted at a meeting, it was claimed.

The court was told the alleged fraud was perpetrated by four named directors of The Label Centre Limited (TLC) with an address at Canal Turn, Clondalkin Industrial Estate, Co Dublin.

Mr Robert Hastings, for Ulster Bank Commercial Services (UBCS), with registered offices at Georges Quay, Dublin, said that when the four directors were challenged at a meeting with his clients on October 15th, one had opened the meeting by acknowledging it was "hands up time".

Counsel said the fraud was perpetrated on an extraordinary basis against his client and had fooled both the auditors of TLC and those of UBCS.

In an affidavit, Mr Anthony Duffy, client relations director with UBCS, said the "hands up" statement amounted to an unsolicited admission that the director and fellow directors had obtained monies by way of fictitious and bogus invoices.

Mr Duffy said invoices had been fradulently created and assigned to UBCS where no goods had been ordered or delivered in respect of such invoices, and upon which money was obtained on a fraudulent basis from UBCS.

He said the company's liquidity position had worsened as a result of the sales fall-off and about two years ago the defendants set up a system whereby they commenced assigning bogus invoices on a deliberate basis.

Mr Duffy said that an employee of TLC had advised UBCS that the defendants had endeavoured to keep UBCS away from the accounts section as far as possible lest anything be overheard or discovered. Mr Duffy said the fraud suffered by UBCS could amount to between £770,000 and £1.7 million with interest.

He said the defendants had failed to disclose the whereabouts of the proceeds of the fraud other than stating that the monies were applied for company use.

Mr Justice O'Sullivan granted UBCS an interim order against four men stated to be directors of TLC - Mr Niall Clarkin, Mr James (Jim) Kenny, Mr Frank Donnelly, Mr Gerald (Gerry) Roche - and against TLC itself, restraining them from reducing their assets below £800,000.

They were also ordered to make discovery of their assets including monies held within this jurisdiction, property and pension funds.

Mr Roche, as secretary of TLC, was ordered to comply with this order within seven days. The case was returned to October 28th.