JMSE owner `was warned organisation could collapse'

Mr James Gogarty said he warned Mr Joe Murphy snr on May 10th, 1988, his businesses were being conducted in such a careless, …

Mr James Gogarty said he warned Mr Joe Murphy snr on May 10th, 1988, his businesses were being conducted in such a careless, negligent and reckless manner that in a short time the organisation could collapse.

In a letter to Mr Murphy, Mr Gogarty wrote: "I am enclosing for your confidential and urgent attention ammunition to assist you in your present difficulties. There is a very strong case indicating that your businesses at best are being conducted in such a careless, negligent and reckless manner as to indicate that in a very short time, the entire organisation will come crashing down.

"I feel the evidence of this is such that it would be very difficult to prove that fraud has not taken place.

"As you know, it is the duty of the trustee to totally protect your interests and in this regard it is very difficult to prove that they are not acting in concert with the management, or that they are acting in your interests or that they are not aware of what is going on.

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"I understand that guarantees have been given by the trust (secured by trust assets) and that mortgages have been given on many properties. You will appreciate that if the overall organisation collapses for any reason, the trust will also collapse by virtue of the guarantees which it has given.

"As your loyal servant and colleague, and taking into account both my age and your age, I strongly and completely believe that together we can not only rescue the situation but can return the organisation to profitability once again. "Although this would be challenging, it would also be exciting to both of us and we could aim to take the entire organisation on to the Stock Market as part of the exercise. I envisage the overall timing to be not more than two years.

"I would very much like to meet you in this matter so that we could take the first firm steps together."