6 days ago
Financial consultant who misappropriated funds to repay money, court told
A financial consultant has given a number of undertakings to the High Court to take steps to repay money he misappropriated from two companies he was engaged to wind up.
Accountant David Kennedy and David Kennedy Financial Consulting of David Kennedy Financial Consulting Ltd, Orwell Shopping Centre, Templeogue, Dublin, consented to several orders, including judgment against him personally in the sum of €588,301 in favour of the two companies owned by third parties.
On Wednesday, the court was told Mr Kennedy was taking steps to wind up his business, as he had a number of other liquidations which he had to deal with beforehand.
Mr Justice Brian Cregan said it was a matter of significant concern that in circumstances where Mr Kennedy admitted misappropriation and breach of duties that he could 'possibly continue for a day longer as a liquidator'.
READ MORE
Micheál D O'Connell SC, for the defendants, said the orders made preclude him from misappropriating funds for other 50 companies he was dealing and it was necessary that they be wound down in an orderly fashion. It is anticipated allowing him to continue in his role for the time being will enable him to improve the situation not only in relation to the clients in this case but to others who are affected.
Jarlath Ryan SC, for the plaintiff companies, said his side was satisfied that was addressed by obligations in the part of the orders restraining him from only to paying €1,000 per business transaction apart from normal wages, all monitored by the liquidators put in to replace him. He also must 'come clean' and disclose all other assets, he said.
The judge said he wanted the Association of Chartered Certified Accountants (ACCA) to be notified and supplied with court papers so that it could tell the court whether it wished to be a notice party in the case.
The other orders require that Mr Kennedy is only entitled to €15,000 in living expenses until the end of October and that he repay funds he had diverted from the plaintiff companies and restraining him from reducing assets in his consulting company below €588,301.
He must also transfer €300,000 from a Bank of Ireland account he held to Micheál Leydon, the receiver who has now been appointed by the court to recover the funds. The court heard he had already transferred €200,000 from that account back to receivers who replaced in as liquidators of the plaintiff companies.
He must deliver to those liquidators all books and records of those companies. The court heard gardaí were investigating him and had removed records and the Office of Corporate Enforcement had also been notified.
The orders provide that proceedings against his wife, Danielle Colgan, who is also a defendant, can be adjourned generally on payment of €19,000 to the receiver. Mr O'Connell said she was the unknowing recipient of funds from her husband. Ms Colgan is the sole shareholder of David Kennedy Financial Consulting.
Earlier this month, the court granted orders freezing assets of the defendants below €800,000, the sum which Mr Kennedy was engaged to capitalise on behalf of the two plaintiff companies.
When the case returned, the court was told Mr Kennedy had 'put his hands up' in relation to the misappropriation and wished to be as much assistance as he can in recovering the money.
Mr Justice Cregan adjourned the case to October but said in the meantime he would like to hear from the ACCA in relation to possibly making it a notice party.
