A Swiss woman who was impressed by the apparent wealth and expertise of a young German businessman tried to interest him in a property purchase and development project in Co Cork, a money-laundering trial at Cork Circuit Criminal Court was told yesterday.
Ms Maria Bernadetta Jehle (47), of The Priory, Cobh, who denies two charges of handling money knowing it was the proceeds of other people's criminal activity, described how she met Mr Sven Uwe Palisch through a friend. "He seemed to be a very rich young man," she said. "He was always changing his cars and drove a BMW, a Rolls-Royce and Ferrari. I got on well with him and thought he understood a lot about business."
She tried to interest him in the purchase of Bellay Castle, near Carrigaline, which she knew was for sale with permission to build 20 houses, but Mr Palisch was more interested in buying The Priory, which she owned through a company named Gidlow.
She eventually agreed to sell him a portion of the company, so he could build his own house on some of the land at The Priory.
Mr Palisch is the man the State believes swindled money from a German hotelier and a French dentist and laundered it through Irish bank accounts.
Ms Jehle said she first came to Ireland in 1989, liked it very much and noticed how many houses were for sale, especially older properties.
This interested her because she had a property business as well as other interests in Switzerland. She went into business after a divorce in 1981.
She bought a ruined 300-yearold cottage in Tipperary in 1991, renovated it and began property dealing in conjunction with an Irish auctioneer. Her function was to market Irish properties in Switzerland.
In 1991 she bought The Priory, "the most beautiful property I had ever seen", for £350,000.
Between 1990 and 1994 she worked very hard and was doing well, but in 1995 she became ill and her son, Peter, now aged 29, tried to run the businesses for her. "He was young and inexperienced and things didn't go well."
Her first contact with Mr Palisch was in 1996. Mr Palisch transferred DM500,000 (£200,000) to her Irish bank account in part payment for the property at The Priory. The remaining DM250,000 was to be paid after she had made all the necessary arrangements for the deal.
The trial, now in its eighth week, continues today before Judge Patrick Moran and a jury.