THE Department of Enterprise and Employment is considering taking further action today to protect the interests of investors in the Taylor Group.
Last night, senior Departmental officials and Government legal advisers were examining the initial findings of a Departmental inquiry. It is understood that around £1.5 million of investors' money remains unaccounted for following the initial investigation, with all the money relating to accounts handled personally by managing director Mr Tony Taylor. However, sources say that the final figure could be between £3 million and £5 million, with a dozen or more investors involved.
Last night, the chief state solicitor's office was being consulted on the next steps. The Department has wide powers, including winding up a company if need be.
It is understood that the company's main trading bank account has been largely emptied of funds, leaving no money to pay the remaining staff.
Mr Taylor, who has not been seen in Dublin for more than a week, is understood to have sold his 1992 300 SE Mercedes to a leading Dublin garage within the past fortnight.
Earlier this week, staff at Mr Taylor's office in Clyde Road, Ballsbridge said he was travelling in the UK, but it is believed that his whereabouts are now unknown.
It is understood that at least one senior executive resigned from the firm on Wednesday night.
The acting chief executive of Taylor Asset Managers, Mr Tom Lynch was at the company's Cork offices yesterday, but did not return calls.
The two investors who have complained about Mr Taylor became aware that there might be problems about their funds at the end of May. They sent letters containing searching questions about where their funds were invested, but replies were not forthcoming.
They sought to make withdrawals, but when the funds were not forthcoming they referred the matter to the Irish Brokers Association (IBA) and to Fidelity, the fund management group which Mr Taylor represented in Ireland.
Three investors have instigated court proceedings for the discovery of documents relating to their investments.
The IBA is the main industry representative body and regulates its members. When it received the complaints, it wrote to Mr Taylor and Taylor Asset Managers seeking detailed responses to the queries raised.
The IBA, which is refusing to say what kind of cover its members have for situations where investors have problems with member companies, has not received a response from Mr Taylor. He had been due to appear before the council yesterday to answer the queries.
It is understood that among the investors who have contacted the company in recent days are a handful with whom, it now appears, Mr Taylor dealt personally. These would mainly be wealthy business people with substantial sums of money to invest.
The Department has sweeping powers under the new Investment Intermediaries Act.
Its authorised officer, Mr Martin Cosgrove, an accountant working in the Department, has already completed his initial report. He is believed to have found that the questions do not surround the main business of Taylor Asset Management, which industry sources say has around £50 million of investors' funds. The authorised officer is not believed to have made contact with Mr Tony Taylor.
