A Co Antrim man on trial for fraud charges linked to the sale of the Northern Ireland loan book was branded a “greedy fker” by a senior member of an American-based investment firm, a jury heard on Monday.
The comment relates to Ian Coulter (54), a former managing partner of Tughans solicitors from Templepatrick Road in Ballyclare, who has been charged with five offences over a time frame of April 3rd to December 1st, 2014.
His co-accused is 83-year old Frank Hugh Cushnahan, a former corporate financier from Alexandra Gate in Holywood, who is standing trial on two counts of fraud spanning over a period from April 1st to November 7th, 2013.
Both men have denied the charges that arise from the sale of the Northern Ireland property loan book held by the National Assets Management Agency (Nama).
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As the Nama trial resumed at Belfast Crown Court, a former vice-president of US investment fund Pimco was called to give evidence.
James Gilbert outlined his former role within Pimco which he said was “principally to source and execute real estate-related investments” for the firm.
The prosecuitng barrister, Jonathan Kinnear KC, then asked Mr Gilbert about Tuvi Keinan from the London-based US law firm Brown Rudnick.
Mr Gilbert said he was introduced to Mr Keinan “at some point in 2012 by a mutual friend” as he was considered someone who might have been able to assist him in finding property investments for Pimco.
Mr Kinnear then asked Mr Gilbert about discussions surrounding “a possible deal with Nama” and Mr Gilbert confirmed Mr Keinan informed him of a potential deal “of a significant size that involved the Northern Ireland loan book” which became known as Project Eagle.
When asked if Mr Keinan mentioned anyone else he was involved with in the deal, Mr Gilbert said “he mentioned that he was working on a deal with Mr Cushnahan and Mr Coulter”.
The prosecutor then queried Mr Gilbert about when he first met Mr Cushnahan and Mr Coulter and he said it was on April 30th, 2013, at Pimco’s office in London.
Topics discussed, he confirmed, included the politically sensitive nature of the deal as well as Cushnahan and Coulter promoting the buyer of the deal to the Northern Ireland Executive.
Mr Kinnear then asked Mr Gilbert if he was aware that Mr Cushnahan was a member of the Northern Ireland Advisory Committee (NIAC) which was set by Nama to advise in respect of property debts in Northern Ireland.
Mr Gilbert said he was but that he didn’t know if it was at the initial meeting in London “or shortly thereafter”.
He was then asked about a meeting in Stormont on May 23rd, 2013.
Mr Gilbert confirmed he and two Pimco colleagues travelled to Belfast and met then first minister Peter Robinson, then finance minister Sammy Wilson and special adviser Richard Bullock.
Also in attendance at that meeting were Tuvi Keinan as well as Mr Cushnahan and Mr Coulter.
Mr Kinnear asked what happened at that meeting and Mr Gilbert replied: “We pitched to Mr Robinson and Mr Wilson and Mr Bullock and we tried to describe why it was that we would be a good buyer for this loan book.”
The prosecuting KC then moved to the issue of the success fee and asked the witness when this was first discussed.
Mr Gilbert said he believed the first time it was mentioned was “immediately after the meeting, in the car park at Stormont” with Mr Keinan.
Asked what was said, Mr Gilbert said the nature of the discussion was “if this deal comes to fruition, there would be a success fee to be paid” which he said was “not unusual for a real estate transaction”.
Mr Gilbert added that subsequent to that, it was suggested the success fee would be split three ways between the Brown Rudnick law firm, Tughans law firm and Frank Cushnahan.
Mr Kinnear then spoke of the proposed €16 million success fee and asked Mr Gilbert about an exchange of emails he had with Mr Keinan on September 5th, 2013.
In an email sent by Mr Keinan, the solicitor told Mr Gilbert that “Ian giving me an earful” as the amount was in euros and not sterling and that “he was not happy”.
Mr Gilbert confirmed the Ian referred to was Ian Coulter.
He was then asked about a responding email he sent to Mr Keinan in which he wrote “Tell him he’s a greedy fker from me”.
When asked by Mr Kinnear what he meant, Mr Gilbert said the success fee discussed was €16 million.
Had it been £16 million, the court heard, this would have been 20 per cent higher due to exchange rates at the time.
The jury of nine men and three women has already heard that the Pimco deal fell through in March 2014.
