CSOA BARRISTER is to remain in prison until he comes up with firm proposals to pay back €635,000 which he failed to pass on to the Revenue Commissioners as the tax bill for a company which later went into liquidation, the High Court heard yesterday.
Patrick Russell, Steelstown, Rathcoole, Co Dublin, who also claimed to be a tax expert, was arrested last Tuesday week and lodged in Mountjoy Prison on foot of an arrest warrant for failing to purge contempt of the High Court by not providing a detailed explanation of how he intended to pay back the money.
He had been in England for some months having promised on July 11th last to have a draft for the money by July 24th, the High Court heard.
When he failed to come up with the money, a warrant for his arrest automatically issued 10 days later.
The High Court heard yesterday that he was arrested on Tuesday week when he returned from England to deal with other proceedings involving his family.
He appeared before Mr Justice Liam McKechnie earlier this week when his lawyers said he had come up with proposals to deal with the debt which is due to the liquidator of the company involved, Ardline Aircon Ltd, part of the REL Refrigeration Group of Hebron Industrial Estate, Kilkenny.
Ardline claimed Mr Russell, who held himself out as a tax expert, had failed to pass on the €635,000 to discharge its (Ardline's) tax liabilities and he also got another €50,000 in fees, which the company also wants him to return.
Ardline got an order freezing Mr Russell's assets for the sum of €635,000 and also sought his committal to prison for failing to comply with a previous court order requiring him to explain what he did with the original money. Last July he undertook to repay the money, but later went to England.
Yesterday the High Court was told Mr Russell was involved in a transaction in England in which he was to receive €850,000, but lawyers for the Ardline liquidator were not satisfied that, in letters provided by him about this matter, there was enough detail that would ensure this transaction would go through.
Counsel for Mr Russell said he was unable to give the court any more detail other than what had been provided in letters to the court.
Mr Justice McKechnie said he had "an innate sense" that there was something significantly amiss about Mr Russell's latest proposals, especially given his previous undertakings to court.
He ordered that Mr Russell remain in Mountjoy until his lawyers have received irrevocable assurances that the debt to the liquidator will be discharged.
The judge said he would request the prison governor to make whatever files and facilities necessary for Mr Russell to do this. It will then be up to Mr Russell to come back to court to show this had been done and thereby purge his contempt.