Gardai are investigating financial irregularities at a Limerick mortgage brokerage which has closed its offices in the city centre. Initial estimates are that about £300,000 is unaccounted for, although this figure could rise.
Mr Pat Foote was the principal promoter of the firm, the Irish Mortgage and Finance Bureau, which operated from rented offices at 57 O'Connell Street. The company's name had been removed from the offices yesterday.
Mr Foote, of Parteen, Limerick, was unavailable to comment. He is understood to be in a medical institution.
The Garda investigation began after complaints from the firm's clients. The firm's main business was arranging mortgages for home-buyers with banks and buildings societies but it also accepted funds for investment.
It is understood that over 100 complaints are being investigated. i. Many of the sums missing range from £3,000 to £10,000, given to the firm by home-buyers as deposits for mortgages.
However, one client is believed to have given the firm up to £100,000 to invest over the last year.
Sources said there was no indication that the missing money might be available to reimburse clients. There were no signs of it in any bank accounts or property connected to the firm.
They also said Mr Foote was regarded as the major figure in the firm and that other employees appeared to know relatively little about the detail of its operations.
The only other director of the firm, Mr Darragh Howley, told The Irish Times last night that he had resigned as a director in May.
"I got onto my solicitor and I sent in a letter of resignation," he said. Asked if there was £300,000 missing, he said: "I reckon that easily. I reckon there could even be more."
Mr Howley said he had become aware that there were financial problems at the firm and that it was he who had alerted gardai.
It emerged yesterday that some financial institutions became wary of the firm and suspended arrangements with it before the closure of its offices last week.
The ICS building society, part of the Bank of Ireland, confirmed it had conducted business with the firm, although it said the arrangement was terminated "some time ago".
Under consumer legislation, mortgage brokers are required to apply for registration to the Director of Consumer Affairs and have to receive an authorisation to act as a mortgage broker.
The office of the Director of Consumer Affairs said yesterday the Irish Mortgage and Finance Bureau had "not applied for registration or received an authorisation to conduct business as a mortgage broker".
A spokesman for the Irish Brokers Association said the company was not registered as a member.