A series of events which might have warned of the impending collapse of a Limerick mortgage broker's firm appear not to have been linked by the authorities.
As the Garda fraud squad joined local officers examining the "financial irregularities" at the company, it emerged that an inspector from the Office of the Director of Consumer Affairs visited the firm two weeks ago.
The Irish Mortgage and Finance Bureau, trading from 57 O'Connell Street in Limerick and run by Mr Pat Foote, shut its offices last week owing an estimated £300,000. Mr Foote, of Parteen in Limerick, is now in a medical institution, and more than 100 clients are seeking the return of their funds, mostly sums ranging from £3,000 to £10,000, given as deposits for house purchases.
The events which might have warned of the collapse include: the firm's failure to reply to a standard letter from the Director of Consumer Affairs last February, asking if it was acting as a mortgage broker.
A complaint by a client to the Director's Office in May, over a £7,000 investment with the firm.
A letter to the Director's Office from the ICS Building Society in May, saying it had terminated mortgage business with the firm.
Mr Foote's failure to respond after an inspector from the Director's office called to see him.
The Director of Consumer Affairs, Mr William Fagan, said these events were not a failure by the regulatory system, but evidence that it was working. "We're shaking the tree, and the rotten apples are falling out."
Asked about the visit, Mr Fagan said Mr Foote was not available to meet the inspector, who wanted to check if the firm conducted mortgage business. The inspector left a message. "We were going to call back," Mr Fagan said.
Mr Fagan added that the letter about the £7,000 investment was sent by his office to the bureau run by insurance companies which regulates some investment businesses, and he understood it was then sent to the Central Bank. He said the letter from the building society was not unusual.
One person yesterday described giving cash as a deposit on a house to Mr Foote. Mrs Patricia de Vito said she and her husband, Dino, were told they could "get a mortgage without any paperwork". No house was purchased and they spent weeks trying to retrieve the deposit.
She said Mr de Vito - a second cousin of the Hollywood actor Danny de Vito, who starred in the 1991 film Other People's Money - warned people in the firm's office in June he was having difficulty getting the cash back.