BANKRUPT BUSINESSMAN Seán Quinn and his nephew Peter Darragh Quinn were the prime movers of a “deliberate and deceptive” strategy to strip Quinn companies of international property assets and put them out of the reach of Anglo Irish Bank, which was owed €2.8 billion by Quinn companies, it was claimed before the High Court yesterday.

Anglo, now Irish Bank Resolution Corporation, is seeking orders for attachment and committal to prison of Seán Quinn, his son Seán jnr and nephew Peter Quinn over alleged contempt of court orders in June and July 2011 restraining dissipation of assets.

The defendants deny contempt and Peter Quinn alleged his signature was forged on certain documents.

The bank contends the orders were breached via a strategy involving an “elaborate and labyrinthine” structure of companies in Ireland, Belize, Russia, India, Cyprus, Ukraine, Sweden and the British Virgin Islands.

Paul Gallagher SC, for the bank, said the alleged strategy involved a “mysterious character”, a former Ukranian railway worker turned corporate strategy expert named Yaroslav Gurnyak or Iaroslav Gurniak; court proceedings in various countries; the alleged backdating of documents; the alleged assignment of valuable debt for nominal or no sums; self-bankruptcies of companies in Russia and Ukraine on foot of debts undertaken in unclear circumstances with doubling and retrospective application of interest rates.

The intention was to put many valuable international property assets beyond the bank’s reach, it is claimed. They include the Kutuzoff Tower in Moscow and shopping centres in Ukraine.

Mr Gallagher said the defendants had not explained why valuable debts were transferred to parties apparently unconnected to the Quinns. There were also “very unusual” features concerning minutes of company meetings, documents, agreements and payments, including one of $500,000 to a general director of Quinn Properties Ukraine after she was dismissed.

Mr Gallagher said IBRC had also learned that valuable assignments purportedly made in April 2011 to a Belize company, Galfis Overseas Ltd, could not have been made then as it was a shelf company. IBRC contends they were actually made on July 20th, 2011.

The case, which involves strong disputes about fact and which will involve cross-examination of some of the defendants, is being heard by Ms Justice Elizabeth Dunne and is expected to last several days. The bank has given the judge a six-page list of individuals and companies across seven countries to be referred to.

The bank claims the Quinn family tried to put foreign properties worth up to €500 million, on which the bank claims it has legitimate charges, beyond its reach. The properties are in a web of international holding companies.

Yesterday, Mr Gallagher noted that solicitors for the Quinn side had, in a letter on March 7th 2011, acknowledged that, of Anglo’s total loans to Quinn companies of €2.8 billion, some €455 million were valid and related to investments in the Quinns’ international property portfolio.

Mr Gallagher said IBRC contends the defendants had broken the orders granted by Mr Justice Frank Clarke on June 27th 2011 and July 20th 2011 restraining disposal of assets. The defendants argue that any steps they took concerning the assets were carried out before the orders were made.

Counsel said IBRC contended certain steps were taken before June 27th and others after that. The bank believed some actions after June 27th were a continuation of earlier steps while others were a “change of direction”.