A High Court judge has sought clarification of issues relating to an application by a company for the return of some €685,000 given for investment purposes to alleged pyramid scheme operator Breifne O’Brien, whose assets-freezing order was today increased to €16 million.
Mr Justice Peter Kelly said the €685,000 judgment order was being sought by a company, Barty O’Brien Ltd, but documents in the case appeared to indicate the agreements were executed personally by a director of the company, Martin O’Brien, of McElwaine, Brownstown, The Curragh, Co Kildare, and that it was his own money that was involved.
The judge said he needed clarification of the identity of the plaintiff before granting judgment in the amount sought.
John Hennessy SC, for Barty O’Brien Ltd, said he accepted there were contradictions between what was stated in Martin O’Brien’s affidavit and the documents exhibited but his instructions were the money was loaned by the Barty O’Brien company to Breifne O’Brien.
In his affidvait, Martin O’Brien said he was introduced to Breifne O’Brien by an investment advser, Peter O’Reilly, who knew Breifne O’Brien for some 20 years and who said he believed Breifne O’Brien was a person of integrity and ability.
Martin O’Brien said he agreed, on behalf of his company, to invest in transactions which involved Breifne O’Brien acquiring an option over properties at Place Vendôme in Paris.
He said some €685,000 was invested and he was told repayment of the money invested would take place in November last.
In early December, he received a cheque for €27,236 from Breifne O’Brien drawn on the acount of Avonmere Ltd which he now knew was dissolved in August 2008. The cheque was returned to him on December 12th last marked ‘refer to drawer’ and he learned on December 12th Breifne O’Brien was in financial difficulty.
After counsel asked for time to address the issues raised by the judge, Mr Justice Kelly agreed to adjourn the judgment application to Friday, adding he was prepared to make a judgment order but needed to known the exact identity of the judgment recipient.
Dealing with a separate application by Robert Dennison, of Beechpark, Tipper, Naas, Co Kildare, for judgment for €312,085, the judge made an order for repayment of that sum which, he was told by Mr Hennessy, was the outstanding amount of sums advanced by Mr Dennison to Mr O’Brien for investment purposes.
In an affidavit, Mr Dennison said he was also introduced to Breifne O’Brien by Peter O’Reilly who informed him of an investment opportunity related to Place Vendôme, Paris. Mr Dennison said he agreed to invest €500,000 with an expected return of €61,236. He was later asked to allow his money be rolled over in relation to a second Paris transaction but he had said he needed the money returned for other purposes. Some monies were returned but he was still awaiting the return of invested capital of €312,098.
Earlier, Gabriel Gavigan, for Mr O’Brien, said his client was neither consenting nor objecting to the applications for judgment and was making no admissions relating to the matters set out on affidavit. Mr O’Brien was also prepared to consent to the freezing order on his assets being increased to €16 million, to include costs, counsel added.
Mr O’Brien, of Invergarry, Silchester Road, Glenageary, is alleged to have operated a “pyramid” investment scheme over some 15 years misappropriating millions from several investors to fund his personal lifestyle and business interests.The court has to date made orders requiring Mr O’Brien to repay some €14 million paid out to various investors.
Earlier this week, the judge referred papers in the case to Garda fraud detectives after saying it appeared friends of Mr O’Brien were the apparent victims of a “highly successful but not particularly sophisticated confidence trick”.
Mr O’Brien has estimated his assets at €36 million but lawyers for various investors have said the actual figure might be closer to €20 million when charges and liabilities are taken into account. Mr O’Brien’s debts seemed to be about €17.23 million, the court has heard.
