Ukraine property investors seek return of €8m

TWO BUSINESSMEN and an investment company are facing court proceedings by some 56 investors seeking the return of more than €8 million allegedly paid over to fund a property investment in Ukraine since found to have defective legal title.

One investor said he had learned from documents he was “continually lied to about the whole investment project” and he also alleged the defendants treated the investors’ money as their own personal money.

Thomas Meyler said he believed the original investment fund of €9.7 million has reduced to some €3.4 million without the investors having acquired any assets as the Ukraine property was bought with a title since declared flawed.

The actions are being taken against Haydon (Private Clients) Ltd, trading as Haydon Investments Company (HIC), and Peter Haydon, with addresses at The Mall, Beacon Court, Sandyford, Dublin. Aidan Corless, of Kinvara, Westminster Road, Foxrock, Dublin, was also joined yesterday as a defendant.

It is claimed the defendants misused more than €5.2 million of investors’ money to acquire a property at Kiev, Ukraine, in a manner intended to give the defendants additional profits unknown to the investors but the defendants ultimately acquired only defective title to the property.

Mr Justice Peter Kelly was told yesterday it is being alleged investors had transferred sums of some €8 million to Haydon Investments under a scheme whereby it, using the vehicle of a Cypriot-based holding company, Lemuranco Holdings Public Ltd, and the latter’s wholly-owned Ukranian based subsidiary, Lemuranco JSC Ukraine, would acquire a commercial property in Kiev.

Jarlath Ryan, who said he was representing about 46 investors and expected another nine to join the litigation, said no such interest was ever acquired. He said the 55 had between them paid over sums of €7-8 million.

He secured leave from the judge to serve short notice on the defendants of proceedings aimed at securing return of the money and to prevent them reducing or dissipating assets.

In related earlier proceedings transferred yesterday to the Commercial Court, Quotumas Investments Ltd claims the Haydon defendants advertised in the Sunday Business Postin early March 2007 seeking investors for the Kiev project. Quotumas claims it replied to the defendants and invested €1 million on terms.

Quotumas claims the Kiev property was never purchased in the manner represented by the defendants to them and that the Haydon defendants instead provided investment funds to Mr Corless to purchase the property in his own name.