The High Court yesterday heard allegations that First Active, formerly known as First National Building Society, acted improperly with regard to communications concerning the opening of a savings account by one of its customers in 1995. Clare Shoesmithreports.

Giving evidence for the prosecution on the third day of the case taken by Cornelius Cagney against Friends First, Tadgh Lombard, a qualified accountant and tax consultant, read from a report compiled by himself saying questions had arisen during his investigation into the allegations as to the record-keeping procedures at the building society.

He alleges that "proper good practice" was not followed by First National with regard to facilitating Mr Cagney with a receipt following a meeting in Mr Cagney's home on May 16th, 1995, which concluded with him hand- ing over two cheques totalling £141,161.48 to Declan McCann, manager of the First National branch in Kilkenny.

Mr Cagney alleges the cheques, and an account application form signed by himself and his eldest daughter Hélène, were given to Mr McCann in the presence of Mr Cagney's friend and business acquaintance, Tony Sheridan, in the belief they were both to be deposited in a new joint account in his own name and those of Hélène and his younger daughter Geneviève.

However, later £100,000 of the money was lodged into an account set up for Mr Sheridan under the name of J Sheridan for the purpose of a business venture in which Colm Ó hÓisín, counsel for Mr Sheridan, alleges Mr Cagney had agreed to participate.

Mr Cagney denies this allegation.

He says he only became aware that his money had not been invested in a high-yielding account as instructed two years later when the balance of the account had been reduced to £868.

The court yesterday also heard from Mr Cagney's daughters, who both denied that the signatures on the account application form they were shown as evidence were either that of Hélène or their father.

In addition, Geneviève was shown a copy of the application form with her own signature on it, although she denies ever having signed the form as she was at the time deemed to be a minor.

Mr Cagney also alleges that First National sold shares worth about £10,500 held in his and his dead wife's names without his authorisation.

The case continues today.