FORMER FIANNA Fáil councillor Gerard Killally and former Co Offaly GAA football manager Richie Connor are denying claims by former business partners they made several million euro in “secret profits” from four land deals in Co Offaly. Both men have previously admitted making secret profits from two property deals, but deny that there were four such operations.
Mr Justice Brian McGovern yesterday began a hearing to assess damages due to former partners of Mr Killally and Mr Connor, who worked together as Gerard Killally auctioneers, arising from their admissions in relation to the handling of two of four land deals.
Both men have denied making secret profits relating to the other two deals and the judge has to decide whether secret profits were in fact made from all four transactions.
Declan Guing, Carrick Road, Edenderry, and Frank Lawlor, Clonmullen Lodge, also Edenderry, are seeking damages in relation to all four deals, alleging misrepresentation, breach of contract and unjust enrichment.
Adrian Daly, Racefield House, Cappincur, Offaly, who claims he was involved as a partner in the two deals where secret profits were not admitted, is suing in relation to those deals.
It is claimed Mr Killally and Mr Connor introduced the respective partnerships to the deals, acted as negotiators and agents for the partnerships and made secret profits which were not disclosed.
The hearing, which is due to last six days, was told, in relation to the later two deals, pieces of land were allegedly “hived off” in the sale and the beneficial interest in those was transferred to companies connected to Mr Killally and Mr Connor.
While Mr Killally and Mr Connor have admitted making secret profits in relation to two of the four land deals, Mr Killally is appealing certain aspects of court orders made in relation to those first two deals. He and Mr Connor deny they made any secret profits in the latter two deals.
Opening the damages case yesterday, Luan O’Braonain SC, told the court the first piece of land to be bought by the Killally/Connor/ Lawlor/Guing partnership in 2005 was 9.5 acres, known as the Daingean Road lands at Cappincur, Tullamore. The partnership paid €6.5 million for these lands, but it turned out the actual price paid was €5 million, counsel said.
It was claimed, without the knowledge of the other two partners (Lawlor and Guing), the land was acquired not directly from Mulligan Builders (Midlands) Ltd, as the plaintiffs believed, but by a tax adviser retained by Mr Killally called Cyril Keegan, principal of a company called Command Private Clients. This sub-sale secretly procured a profit of €1.5 million to Killally and Connor, counsel said.
The second deal was for 16 acres in the centre of Edenderry which had planning permission for a major development. This property, the Downshire-Edenderry lands, was sold in a series of transactions secretly procured by the defendants by a company called BMPK Ltd in trust to a solicitor for €9.5 million, counsel said.
The land was then sold on for €11.5 million to the partnership in a manner which concealed the true nature of the transaction, counsel added.
The third deal was for 16.4 acres of unzoned property in Edenderry, known as the Stateridge lands, which were to be bought for €2.25 million from a local farmer.
While these lands were unzoned, Mr Lawlor said he was told by Mr Killally, then chairman of Offaly County Council, the land would be rezoned “in a matter of weeks”. When that deal went through, a 1.1 acre piece was disposed of to a third party without the knowledge of Mr Lawlor, Mr Guing and Mr Daly, who was then involved as a partner.
The fourth deal was over a 30-acre site in Edenderry known as the Dublin Road lands and was similarly transferred in a complicated arrangement involving a number of companies, counsel outlined. That site was sold to the partnership for €10.1 million, but when the maps were examined later, it was found only 27 of the 30 acres had been transferred.
It is claimed, unknown to Mr Lawlor, Mr Guing and Mr Daly, the land was first bought from the same farmer by a couple who were the principals of a company which then sold it on to a company whose directors were Anthony Maher, an employee of Mr Connor, and James Darby, a friend of Mr Connor. The hearing is expected to last six days.