A HIGH Court judge has described the circumstances of a multimillion land deal in Co Offaly, in which €7 million lent by a bank has gone missing, as the “most dishonest transaction” he has ever encountered as a serving judge.
Mr Justice Peter Kelly directed that the papers in the case be sent to the Director of Public Prosecutions to consider if charges should be brought.
Following a four-day inquiry in the Commercial Court, Mr Justice Kelly strongly criticised three people involved in the deal for the purchase of 55 acres of land in Tullamore, Co Offaly, for €8 million with the intention to resell it quickly for €18 million. However, that plan came unstuck.
While he did not have jurisdiction to make findings in the inquiry, the judge said the public interest required him to record that the whole “sorry affair” was facilitated by “the involvement of professional people who should have had higher standards”.
The case arose out of proceedings by the Irish branch of Investec Bank UK Ltd against businessman Tony McAuliffe and his son Dermot, of Furze, Co Kildare, for recovery of a €7 million loan granted to them to buy the land.
With the assistance of solicitor John Duffy, of Duffy and Co, Monasterevin, Co Kildare, Tony McAuliffe approached a plant machinery mechanic, Martin Conway, whom he knew socially, to become a director, along with Mr McAuliffe’s daughter, Sharon Clarke. A second company, Conway Clarke Properties Ltd, was set up to buy the land.
The immediate resale failed to materialise and Mr Duffy told the court he told “lie after lie” to stave off inquiries from the bank. He was admitted to a psychiatric unit last month when the court inquiry began and has ceased practising as a solicitor. His practice is being operated by his wife.
Mr McAuliffe’s accountant, Frank O’Carroll, denied there was a conflict of interest in him acting for Mr McAuliffe and the subsequent buyer but agreed he had sent a €300,000 bill for services to French Furze when the company was put into receivership earlier this year. Mr McAuliffe said statements by him about having €1.6 million in a bank account from horse dealing were untrue, that he had had no income for the last three years and lived mainly off his wife’s earnings.
Yesterday Mr Justice Kelly heard that Mr McAuliffe and Mr O’Carroll had agreed to certain findings of fact as prepared by Investec, which the judge said may be used in any future proceedings. The court heard Investec may now try to recover the money through a planned sale to a builder. The judge said Mr McAuliffe’s evidence had been “breathtaking” as he had little or no idea of the difference between right and wrong. He described Mr Duffy’s behaviour as “disgraceful”, particularly as an officer of the court. However, Mr Duffy, when he gave evidence, had not tried to evade questions. He described Mr O’Carroll as the “shadowy figure” behind most of the transactions and said his evidence was “dishonest and self-serving” and “on occasions downright untruthful”.
The judge directed that papers be sent to the DPP and ordered the papers concerning Mr Duffy be sent to the Law Society.