The managing director of one of the State's largest property investment firms was charged yesterday with insider trading.
Mr Philip Byrne (44) of Dunloe Ewart appeared in Dublin District Court yesterday on two charges of contravening the 1990 Companies Act relating to insider dealing. It is alleged that in 1997 he sold 260,000 shares in Dunloe House plc (now Dunloe Ewart) while having information in his capacity as a director of Aviette, a firm associated with Dunloe.
It is claimed in the charges that this information was not generally available but might reasonably have been expected to be available to him, being a person connected with Dunloe by virtue of the relationship between Aviette and Dunloe.
This information, if available, would have been likely to materially affect the share price because discussions had taken place on the merging of Aviette with another property company, Monarch, leading to the formation of an entity known as the Cradder Group.
Cradder, it is further alleged, was then to be taken over by Dunloe and, to fund this, Dunloe was being advised to consider a rights issue at a price per share that represented a significant discount on the then price of 34p per share.
The charges contravene Part V of the Companies Act and penalties on conviction in the Circuit Court can attract a prison term of up to 10 years, a fine of £200,000 (€253,948), or both. If the matter is dealt with in the district court, the penalties are reduced.
Mr Byrne, Trafalgar Terrace, Monks town, Co Dublin, said nothing during his brief appearance in court yesterday.
Det Garda James Mullan told the court he arrested him yesterday morning on foot of a warrant issued by the district court on Tuesday.
He was brought to the Bridewell Garda Station where, after he was charged, he had nothing to say. There was no objection from gardai to bail and his lawyer sought a four-week remand.
Judge Miriam Malone set his own bail of £600 (€762) and remanded him to appear again on April 11th. Mr Byrne was held for about an hour in the Bridewell cells while arrangements were made to pay a one-third cash element of his bail.
