Firm’s former chief threatens to release customer details, court told

A former chief executive in a consultancy marketing firm has threatened to publicly divulge the names, addresses and bank details of customers of "the largest mobile phone company in the State" unless paid €135,000 by Tuesday morning, the High Court was told on Monday.

Ex-chief executive Seán McGrath told his former employer Madcalm Limited, Monksland, Athlone, Co Roscommon, that "you don't want to f*** with me on this," Ms Justice Miriam O'Regan was told.

Ryan Baird, a company director with Madcalm, told the court that McGrath warned him at a meeting that he had data files on the mobile phone company’s customers and that he already had a third party lined up to put them out there.

“If you don’t pay me the money I will f*** you guys and if you try to go to anyone else about this I will f*** you,” Mr Baird claimed that Mr McGrath had told him before getting up and leaving the meeting.

Barrister Brian Conroy, counsel for Madcalm, obtained injunctions restraining Mr McGrath from disseminating by any means to any third parties the confidential information that he claimed he would distribute to others. He was allowed to serve Mr McGrath notice of the court’s order to his e-mail on Monday.

Judge O’Regan also restrained Mr McGrath from threatening, approaching or communicating with any official of Madcalm or its clients.

Mr Baird told the court that Madcalm provided consultancy marketing services to telecommunications companies, particularly mobile phone operators to assist them in acquiring and retaining customers.

He said Mr McGrath had been made a director, chief executive and 20 per cent shareholder in October 2011, but three years later differences of opinion led to Mr McGrath’s exit from the company.

Mr Baird said Mr McGrath contacted him on August 23rd and arranged a meeting at which he claimed he valued his worth to Madcalm at €200,000. On leaving the company he had been paid €65,000, and at the meeting Mr McGrath allegedly demanded a further €135,000.

Mr Baird said that when he told Mr McGrath he was not comfortable or willing to have any discussion with him for additional money, Mr McGrath had told him: “Well you need to be because I can ruin you guys. You don’t want to f*** with me on this.”

Mr Conroy told the judge that Mr McGrath had texted Mr Baird telling him he could be engaged on a consultancy basis for 18 retainer payments of €7,500 (€135,000) with a first payment due in his bank account by September 20th.

Mr Baird said Mr McGrath had sought to extort money from Madcalm by threatening to ruin the company’s business through disclosing confidential information, which he unlawfully had taken from the company in breach of confidence and in breach of his exit agreement.

To assist with a marketing campaign in 2013 Madcalm had been permitted by the largest mobile phone company in the State to copy certain information in relation to customers of that company and through an administrative error the files included personal bank account details of those customers.

The error had been identified soon afterwards and the details, in compliance with data protection legislation in the mobile phone business, had been permanently deleted.

Mr Baird said disclosure of “this sensitive personal information” could very seriously damage Madcalm’s business and have a very serious effect on the individuals whose personal data was threatened to be disclosed.

“It is quite conceivable that it could destroy Madcalm given that he has threatened to disclose the information immediately if not paid the first instalment on Tuesday, 20th September,” Mr Baird said.