An investment consultant, described in court as a "Walter Mitty" character, who lost €770,000 of his clients' money, was sentenced to three years in jail by Judge Raymond Groarke at the Circuit Criminal Court in Castlebar, Co Mayo yesterday.
The court heard Anthony Mulroy (56), Rossduane, Kilmeena, Westport, a former refuse truck driver, took €935,000 from 24 people after promising them "incredible" returns of up to 40 per cent for short-term investments of one to six months.
Judge Groarke was told that €770,000 had never been recovered and gardaí have been unable to trace the money. The judge was also told that the defendant, a former "pillar of society", who had been involved in the GAA and community organisations, had not benefited in any way and was now on social welfare.
Mulroy pleaded guilty to 24 counts of unauthorised investment causing loss by deception and obtaining by false pretences.
Garda Margaret O'Connor told the court that a full-scale investigation was instigated by Supt Patrick Doyle following receipt of complaints from members of the public.
The witness described Mulroy as a self-employed tied agent of a number of insurance companies. He had offered investment schemes even though he had no authority to do so, in breach of the Investment Intermediary Act.
One investor was told his investment of €10,000 would mature at €13,500 in one month - a return of 35 per cent in one month. Another investor told gardaí Mulroy offered him a 25 per cent return over six months for €10,000 which he was going to invest in purchasing land in Estonia. The witness said another man invested €60,000 - money that he had been saving for a pension. A further individual, living in England, invested £30,000 (€43,230), his own and his girlfriend's money. The relationship had failed as a result of the money being lost.
Another victim, offered a 40 per cent return on an investment of €70,000, had become extremely stressed as a result of the loss of the money and suffered a heart attack, Garda O'Connor said.
A further investor lost €35,000, money he had been saving to bring a child with special needs to the United States for treatment.
The witness said the investigation into the fraud took 3½ years. Mulroy had four bank accounts in Westport and two in Castlebar.
The defendant would lodge the money he had taken from investors and then withdraw it.
Garda O'Connor said that when questioned by gardaí, Mulroy said he had been moneylending but that it had all spiralled out of control on him. Gardaí had never been able to trace the money, the witness said.
The witness agreed with Martin Giblin SC, defending, that the scheme was doomed to failure at some stage. She also agreed that the defendant was a broken man and his family had suffered as well.
Family members had been abused in the street. The family home had been visited by angry investors and gardaí had to intervene. The children in school had been affected.
Counsel explained that the defendant's farm, valued at €300,000, would be sold, so that approximately 50 per cent of the monies lost would be recovered.
