NIALL McPARTLAND, a solicitor and son-in-law of businessman Seán Quinn, did not stand to make any personal gain from payments of more than €6 million made by Quinn Finance to him in 2008 related to investments in shares in Anglo Irish Bank, his lawyer has told the Commercial Court.
Quinn Finance was the funding vehicle for the Quinn international property group established by Seán Quinn to develop a property portfolio for the benefit of his five adult children. It was removed from the family’s control by Irish Bank Resolution Corporation (formerly Anglo) in April 2011.
The case arises from payments made over several months in 2008 by Quinn Finance (under its former management) to Mr McPartland’s account with NCB Stockbrokers Ltd. The payments were to meet margin calls on contracts for difference (CFDs) investments in shares in Anglo Irish Bank. It is claimed there is no record of the payments being authorised by Quinn Finance.
Rossa Fanning, for Mr McPartland, Castleknock Road, Castleknock, Dublin, said his client had “nothing to do” with those payments by Quinn Finance and had rather made a serious error and acted “unwisely” in letting that company use his name while engaging in company trading.
His client, counsel added, did not stand to make any personal gain from that trading and rather held funds on trust for the benefit of Quinn Finance.
Mr Fanning queried whether Quinn Finance had a cause of action against his client and asked for three weeks to put Mr McPartland’s position on affidavit.
Mr Justice Peter Kelly asked why Mr McPartland had not outlined those matters when Quinn Finance wrote to him last January asking about the payments. Mr Fanning said Mr McPartland was fully engaged in other legal proceedings brought by the Quinn family against IBRC.
Earlier, Una Tighe, for Quinn Finance, on consent of Mr Fanning, applied for the case to be fast-tracked by the Commercial Court. Ms Tighe said the case arose from payments made by Quinn Finance on behalf of Mr McPartland to NCB to discharge margin calls on CFD investments in Anglo shares in 2008.
Mr Justice Kelly listed the case for hearing on June 19th.
In an affidavit, current Quinn Finance chairman Robert Dix said a review of Quinn Finance documents carried out since new directors were appointed suggested those documents were incomplete. The review showed transfers of more than €11 million had been made from Quinn Finance to NCB between June to December 2008, he said.
An NCB wealth management application form signed by Mr McPartland on April 22nd, 2008, stated the sources of his wealth as inheritance, sale of property and other family inheritance, Mr Dix said. Attached to that form was a mandate from Mr McPartland authorising NCB to open an account with IG Markets Ltd to trade CFDs as agent on behalf of Mr McPartland.
Some €6.1 million was transferred from Quinn Finance to NCB for the benefit of Mr McPartland between June and October 2008, Mr Dix said. He had written to NCB on August 30th, 2011, asking for information.
On October 4th, 2011, NCB replied, stating that it had, acting on instructions, credited each of the transfers to the account of Mr McPartland, Mr Dix said.
Quinn International Property Management Ltd sought further information from NCB. In early December 2011, NCB had said that, each time there was a margin payment due on Mr McPartland’s account, Ian Quigley of NCB contacted Mark McNamara of Quinn Finance, or Paul McKenna if Mr McNamara was absent, to inform him of the funds required which were then transferred to NCB.
NCB had said it was not aware who within Quinn Finance authorised the payments and it had not received written instructions from Quinn Finance concerning the margin payments.
