Financial consultant holding ‘hands up' over alleged misappropriation of funds, court hears
David Kennedy, of Orwell Park Grove, Templeogue, Dublin, and who operates David Kennedy Financial Consulting Ltd, Orwell Shopping Centre, Templeogue, 'wishes to be of as much assistance as he can' in efforts to recover the money, his barrister Micheál D O'Connell SC told the court on Tuesday.
It followed an order by the court last week freezing the assets of Mr Kennedy, his wife Danielle Colgan, and the company, following claims of misappropriation by two brothers who were the ultimate owners of the pub 'Quinlans', known as the Black Lion Gastropub in Inchicore. The court was told Mr Kennedy has been arrested by gardaí and charged with fraud over the matters.
Mr Kennedy and the agency are now being sued by joint liquidators appointed to replace the financial consultant as liquidator of BabylonCQ Ltd and Wildemount Assets Ltd which were respectively owned by brothers Cormac and Gavin Quinlan. Both companies were shareholders in KCR Taverns Ltd which operated the pub.
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KCR bought back BabylonCQ and Wildemount shares some years ago, essentially capitalising the two firms for €400,000 each. In 2024, a decision was made to release the funds in the companies for personal use.
This meant the companies were voluntarily wound up, and Mr Kennedy was recommended to do the job by the Quinlans' accountants.
In an affidavit seeking the freezing orders, Eoin Massey, who along with Tom Murray is a joint liquidator of the firms, said the accountants told the Quinlans Mr Kennedy was well regarded in the orderly winding-up of companies.
The capitalised monies from the two companies were transferred to Kennedy Financial Consulting's client account as part of the winding-up process so the funds could then be disbursed.
However, Mr Massey said after months of broken promises to transfer the monies back, the brothers, through the companies, appointed Mr Massey and Mr Murray to replace Mr Kennedy.
The brothers made complaints to the gardaí and Corporate Enforcement, and in June they were informed Mr Kennedy had been arrested, charged, and that further charges may be brought, Mr Massey said.
As a result of the joint liquidators' investigations, they brought the freezing of assets application because of what Mr Massey said was the behaviours, actions, and failures of Mr Kennedy.
Mr Justice Brian Cregan ordered the freezing of the assets of the defendants below €800,000 and returned the case to Tuesday, when Mr O'Connell, for Mr Kennedy, said his client was 'putting his hands up in relation to this and wishes to be of as much assistance as he can' in restoring the money.
Counsel said Ms Colgan is Mr Kennedy's wife, and she was joined to the case on the basis of a particular letter of appointment and is not an appropriate defendant as she says she has no liability.
Ms Colgan is the sole shareholder and director of David Kennedy Financial Consulting.
Counsel said he would be seeking a strikeout of the case against her.
Mr O'Connell said the most important thing at this stage was to identify what assets are available. His side was proposing to put the case back for two weeks during which certain monies can be transferred back to the companies' accounts.
The transfer of monies is prohibited under the freezing order, but counsel did not think there was any difficulty with the plaintiffs' side if transfer back could be allowed. He said it had also been agreed that €12,000 could be withdrawn from the defendant account to cover living and legal expenses, for the time being.
Jarlath Ryan SC, for the liquidators, said the proposals were helpful and there would be no reduction of funds, but he did not think it necessary to strike out the case against Ms Colgan.
Mr Justice Cregan amended the freezing orders to allow for the payment of €12,000 living expenses. He directed Mr Kennedy to provide bank statements and an affidavit and adjourned the case for two weeks.
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