4 days ago
- Business
- Irish Independent
Swedish firm and owner secure fresh hearing in €560,000 CAB case
The decision means that the High Court will have to reconsider if there is sufficient new evidence to show that the frozen money, which is linked to an alleged email scam in 2002, was not the proceeds of crime.
The ruling will have important implications for the CAB when it attempts to freeze and dispose of assets in the possession of criminals such as drug dealers and fraudsters.
It will have to take into account the right of a person or entity to cross-examine an authorised officer – such as a senior Garda or member of the Revenue Commissioners – when they are seeking an order from the High Court for an indefinite freezing order over assets.
The ruling clarifies that where CAB is seeking an order to dispose of assets, no right of cross-examination exists.
However, the Supreme Court noted that the bureau can seek leave to cross-examine persons swearing affidavits on behalf of a respondent, and that a respondent can seek leave to cross-examine CAB agents swearing an affidavit that is being relied on for the purposes of seeking a disposal order.
Mr Zeman and his company, Routeback Media, had argued that the High Court erred in 2022 by excluding fresh evidence when an application was made to dispose of money that had previously been found to be the proceeds of crime.
He and his firm argued that they had not been afforded fair proceedings, for example by being refused permission to conduct a cross-examination of deponents from CAB.
Mr Zeman and Routeback Media had previously and unsuccessfully appealed this point to the Court of Appeal, which had upheld a 2022 High Court decision. They then took their case to the Supreme Court, which has now ruled on the interaction and operation of the Proceeds of Crime Act, which sets out the CAB's functions.
The Supreme Court has determined that since the Court of Appeal had agreed that there was genuinely fresh evidence to be presented by Routeback Media and Mr Zeman in the case, the High Court must now hold a limited hearing. This will be confined to the new material.
Proceedings were first initiated against Routeback Media and Mr Zeman in 2009. This related to just over $651,000 held in a Bank of Ireland account in the name of EuroConex Technologies.
CAB claimed the money was the proceeds of crime, and that Routeback Media had been engaged in a fraudulent scheme involving the online sale of email accounts for $9.95 each.
EuroConex, which was processing credit card payments, was concerned that the money might be the proceeds of crime and had reported its concerns to Swedish police in 2003. Authorities there concluded their investigation in 2006.
Still concerned, EuroConex reported its suspicions to the Gardai and Revenue Commissioners in 2007.
Mr Zeman denied Routeback's business was fraudulent or that the funds standing to its credit constituted the proceeds of crime.
