The signature of an uncle of one of the directors of Money Markets International Limited (in liquidation) appeared to have been forged on documents in relation to the purchase of almost one million shares in Dana Petroleum, it was claimed at the High Court yesterday.
Ms Justice Laffoy, having been told that the MMI liquidator had that block of one million Dana shares for which nobody was claiming ownership, gave permission for the sale of the shares. The proceeds are to be lodged in a bank account.
The judge also made an order permitting the liquidator, Mr Tom Kavanagh, to hire lawyers in the Isle of Man, Guernsey and Jersey to investigate offshore accounts. She gave Mr Kavanagh permission to retain Davys stockbroking firm to give advice in relation to the possible sale of certain shares.
Mr Kavanagh has claimed that MMI directors misappropriated £1.9 million from the company and alleged he could trace sums of £936,816 and £106,842 respectively to two of those directors, Mr Oisin Fanning and Mr John Curran.
Both Mr Fanning and Mr Curran have denied the liquidator's allegations. They are among seven directors being sued by the liquidator for alleged fraudulent conversion and breach of fiduciary duty.
In court yesterday, Mr John Gleeson, for Mr Kavanagh, said there was an unusual situation involving a Mr Hilary Fanning, believed to be an uncle of MMI director, Mr Oisin Fanning. The liquidator had found documents which appeared to say Mr Hilary Fanning was a client of MMI. This was denied by Mr Hilary Fanning's solicitors who had said their client never traded with MMI.
On the face of information in possession of Mr Kavanagh, Mr Hilary Fanning appeared to owe MMI £272,000, counsel said. MMI held almost one million shares for Mr Hilary Fanning in Dana which were worth less than the monies he owed MMI. His solicitors claimed his signature on a document appeared to be a forgery.
Making his application to retain lawyers in Jersey, Guernsey and the Isle of Man, Mr Gleeson said one of the claims against MMI directors was that clients' monies were misappropriated and, as a result, certain clients had lost money. One of those clients was an offshore company, Cater Allen, which was operated by a trust.
The liquidator had been informed by the Jersey authorities that it might be possible to obtain information and documents about Cater Allen if he retained local lawyers. This would be relevant in the proceedings against the directors in order to ascertain in more detail how these transactions came about. It was claimed this particular trust company had monies taken from it without its authorisation, Mr Gleeson said.
In relation to Guernsey, some £200,000 sterling had been taken out of a client account of MMI which was sent, without any client authorisation that one could see, to an account in Guernsey. This was something the directors were being held answerable for and the liquidator wanted to retain lawyers to advise whether he could find out more details about this transaction.
Mr Gleeson said the Isle of Man investigation concerned a company client of MMI known as the Investment Bank of Ireland Nominees Ltd. Its account closed in 1997 and the closing balance was transferred to Cater Allen in Jersey. The company was incorporated in the Isle of Man but was clearly a subsidiary of the Investment Bank of Ireland.
