A group of dental surgeons from the US are anxious to know what happened to more than $1 million which they invested four years ago with an Irish-registered company, the High Court was told yesterday.
Mr Justice O'Donovan granted an order to a company set up by the dentists, Associates in Orthodontics Inc (AOI), and to one of its directors, Mr Don Flanagan, of Chattanooga, Tennessee, directing disclosure of the whereabouts of $1,150,000. The order is against officers of Citizens Finance Corporation (CFC), with registered offices at St Stephen's Green, Dublin, and Citizens Worldwide Employee Leasing Corporation (Dublin) Ltd (CWELCO), with registered offices at Iona Crescent, Dublin.
Applying for the order, Mr Denis McDonald for AOI and Mr Flanagan, said the court had earlier granted an injunction which restrained CFC or its agents from dissipating or dealing with the monies until yesterday. The judge agreed to continue it. In an affidavit, Mr Flanagan said he was in practice with a number of other dental surgeons in Chattanooga who had formed AOI, of which he was a director.
He was approached by Mr Bill Bradham, of Clearwater, Florida, in December 1993 about a tax-efficient retirement scheme available through Mr Neil R. Brown, of Red Bluff, California. Mr Bradham had indicated that Mr Brown had set up companies with a view to providing tax-efficient retirement benefits for US residents.
As a result, AOI, through Mr Flanagan, had arranged for the deposit of $1,150,000 in June 1996. He executed an asset-management agreement in July 1996 which was signed on behalf of CFC by Ms Ciara Kehoe.
Mr Flanagan said CWELCO and CFC operated from premises at St Stephen's Green, Dublin, and Ms Kehoe had dealt with correspondence. Although she was described in correspondence as "president", it appeared she had not been registered as a director of either company.
In November 1998 he was informed by Mr Bradham that the Criminal Investigation Division of the Internal Revenue Service had raided Mr Bradham's office in Clearwater and Mr Brown's home in Red Bluff and seized records.
Since that time, Mr Flanagan said he and his lawyers had been pursuing Mr Brown for information on AOI's investment, but he had indicated it was a matter for CFC and CWELCO. Both companies had been asked for information but no satisfactory explanation had been given.
Mr Kevin Feeney SC, for CFC and CWELCO, said he recognised the injunction must continue and he would have to get instructions from abroad. He was granted a two-week adjournment.