Vodafone entitled to €2.3m over fraudulent orders

A HIGH COURT judge has ruled that Vodafone is entitled to over €2

A HIGH COURT judge has ruled that Vodafone is entitled to over €2.3 million damages against a former financial executive and others who conspired to defraud it by buying services for the company which were either never provided or were inadequately provided.

The Commercial Court previously entered summary judgment for €2.3 million against Niall Barron, former head of the firm’s corporate financial services, over the fraudulent requisitioning of services on behalf of the firm.

The summary judgment order was also against David McGovern and his wife Elaine Dixon, directors of firms involved in receiving requisitions from Mr Barron. The case came before Ms Justice Mary Finlay Geogeghan yesterday for assessment of damages against Mr McGovern and Ms Dixon, Colverstown, Kilcullen, Kildare, and against one of their firms, Fusion TV Systems Ltd.

Damages were sought against Mr Barron, formerly Clonattin Village, Gorey, Wexford, who was not represented. Mr Barron had signalled his intention to defend the matter but had since vacated the address in England he had given, Vodafone’s counsel said.

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Ms Justice Finlay Geogeghan said she was satisfied to assess damages for conspiracy at €2.3 million jointly and severally against Mr Barron, Mr McGovern, Ms Dixon and Fusion. The assessment was made on the basis of a report by forensic accountant, Kieran Wallace of KPMG, who assessed the total amount paid by Vodafone for services not provided, or inadequately provided, at €2,386,320.

Counsel for Fusion and the couple said they were not opposing the amount of the assessment, but were appealing the making of the summary judgment orders against them to the Supreme Court. Ms Justice Finlay Geogeghan granted a five-week stay on damages to allow the bringing of an appeal.

It was claimed Fusion and Chess – which Mr McGovern and Ms Dixon were directors – with the help of Mr Barron, defrauded Vodafone over a five-year period from 2002 by issuing invoices and being paid for services which were not provided at all or were provided by a different company and/or at an inflated price.