The fraud trial of former Cork financier Mr Finbarr Ross over the ill-fated Gibraltar-based International Investments, which went bust owing investors £7 million sterling (€11.3 million), has heard that under £200,000 had been realised in the seven years it had taken to liquidate the company.
Belfast's Crown Court also heard this money was used up in legal and other fees to undertake the liquidation investigation. The liquidator, Mr James Galliano, who was appointed by the Gibraltar courts in September 1984, told the court that not a "single dollar" was realised from investments in the US, while properties and loans from the Republic realised only £120,000 and £65,000 sterling and from the sale of art work.
Mr Galliano was giving evidence during the 11th day of the trial of Mr Ross (54), who denies 41 fraud-related charges. Mr Galliano said from its inception in 1979, International Investments Ltd, headed by Mr Ross and a Mr Jones, had "negligible if not nil" income sources.
Asked to explain how investors were paid interest on their deposits and how those original deposits were repaid on maturity, he said it was difficult to identify but they were probably paid out of a "general fund" which might have been made up of monies coming from new investors. Mr Galliano said, in March 1985, he went to Texas with Mr Colm Allen and Mr Declan Collins and lawyers to meet Mr Ross to discuss IIL's investments in the US.
He said Mr Collins, an accountant, was appointed as his agent in Ireland, "at the request of" Mr Allen, a barrister who was chairman of the committee of inspectors set up to advise on the liquidation. During the short meeting, Mr Ross allegedly told of property investments, some of which were held in Mr Ross's name, while others were held in his name as a trustee for International Investments. He said Mr Ross had agreed to transfer his shares to Mr Galliano.
But Mr Galliano revealed that these proved to be worthless, as Mr Ross held only a minority share in the properties and they, including the largest, a Houston, Texas office block, were in debt to American banks which finally "foreclosed" on the deals.
In Ireland, he said the assets amounted to almost £800,000 in loans to 100 named individuals and companies, property, which he described as being of "very poor quality", and art work. Mr Galliano said nothing was realised from the unsecured loans.
