Mayo TD denies taking ‘hot’ money for investment, court told

Fianna Fail TD Ms Beverley Cooper-Flynn told the High Court today she could not recall issuing a customer a receipt for a cash…

Fianna Fail TD Ms Beverley Cooper-Flynn told the High Court today she could not recall issuing a customer a receipt for a cash investment or a conversation where she was told the money for an investment was "hot".

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Cash is not the way I do business
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Ms Beverley Cooper-Flynn

Ms Cooper-Flynn claimed she was libelled in RTÉ broadcasts concerning her and the sale of investment products during the time she was employed in the Financial Advice Service Division of National Irish Bank (NIB).

She told the court today she did not recall a conversation with a customer, Mr Gary Skelton, at NIB's Donnybrook branch, where he said his investment was in cash and that it was "hot". Nor could she recall, she said, that he asked if the money could be traced and if he could have it back in cash.

Today is the fourth day of Ms Cooper-Flynn’s action alleging libel against RTÉ, journalist Mr Charlie Bird and retired farmer Mr James Howard. The defendants deny she was libelled.

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Ms Cooper-Flynn said she did not recall a second meeting with Mr Skelton at Harbour Master Place, Dublin or giving him a receipt for a cash investment. Nor could she recall getting a sterling exchange rate for the sum of money after it had been counted out on a table before her.

Mr Kevin Feeney SC for RTÉ and Mr Bird, told the court Mr Skelton had the receipt in his possession and that Ms Cooper-Flynn was aware he was investing undeclared money.

When Mr Feeney suggested that Ms Cooper-Flynn could not remember the meetings with Mr Skelton because she chose not to and that the only explanation was that she had misled and lied to the jury she said "no". Ms Cooper-Flynn claimed she did not remember receiving cash from any customer.

"Cash is not the way I do business," she said.

Ms Cooper-Flynn told the court if she had any suspicion of ‘hot’ money she would have reported it. When questioned on her definition of "hot", Ms Cooper-Flynn said she could think of two meanings - a sales persons’ jargon meaning a client who is ready to sign or "hot money" meaning undeclared money to the revenue.

Ms Cooper-Flynn denied receiving a letter in July 1990, from Mr Patrick Cooney, a financial investment manager at her division, addressed to "Hi Guys" which advised the Chemical Medical Insurance (CMI) product, the Emerald International Bond, was suited to people with "hot" money.

When questioned about a number of brochures relating to the launch of the Emerald product and in particular points outlining the tax features, Ms Cooper-Flynn denied the product was indicative of the bank’s desire to tap into "hot money" by directing them into off-shore investment schemes. She said that was not the "intention or the culture of the bank".

She said she sold three Emerald products before it was taken off the market in 1990 as it was not successful.

She denied the tax features of CMI products encouraged tax evasion and said the tax elements were explained to all customers. Every individual had an obligation to pay their tax and I believe most people do, she said.

It was not her duty to speak with accountants of her customers or to check up on their tax affairs, she said.

Ms Cooper-Flynn denied the suggestion by Mr Feeney that money invested in CMI policies went on a "circle" through the Isle of Man returning to the investors bank.

She further denied Irish customers investing in the CMI policy were merely moving funds of an Irish bank deposit to the Isle of Man after which the funds were returned to the investors bank under a CMI account number rather than the customers name minus a charge.

Ms Cooper-Flynn agreed that when she left NIB about 60 per cent of her customers with CMI policies had chosen to put the investment into Irish bank deposits when deciding how the fund would be invested by CMI.

The case has been adjourned until Tuesday.