The High Court heard this afternoon that Ms Beverly Cooper-Flynn assured a retired Monaghan business-woman that a CMI sterling account on the Isle of Mann would be virtually "watertight" and would go undetected by the Revenue Commissioners.
Ms Joy Hawe, who owned a business in Enniskillen for 30 years, told the court that interest on money she held in two building society accounts in Enniskillen, which was the source of her investment with CMI, had not been declared.
She said Ms Cooper-Flynn told her the account would be "numbered", meaning her name would not be connected with it and said the confidentiality of the arrangement "was the most important thing to me".
Ms Hawe, who has three children, decided to invest with CMI after she discovered news that subsequently led to the breakdown of her marriage. She said she was "totally traumatised" to discover in 1998 that there was a "big problem" with her CMI investment.
Earlier today Cavan farmer, Mr Patrick Duff continued his evidence from yesterday. His allegation that Mayo TD Ms Beverley Cooper-Flynn advised him to invest undeclared money in CMI Personal Portfolios, to facilitate tax evasion, was today described as a "fabrication".
Mr Garret Cooney SC, counsel for Ms Cooper-Flynn, put it to Mr Duff that his accusation against Ms Cooper-Flynn was false and designed to assist him with a personal legal action against NIB.
Mr Duff, a publican, news agent, hardware retailer and farmer in Bailieboro in Co Cavan is suing NIB for allegedly giving him poor investment advice which ultimately led to his paying a large tax settlement to the Revenue.
Mr Duff said he paid a £338,000 tax settlement in 1999 after revelations about CMI on RTÉ broadcasts in 1998.
However, Mr Cooney suggested to him once he had seen the broadcast Mr Duff "knew there was trouble coming down the road" and decided to declare his money.
The High Court also heard today that approximately half the money Mr Duff yesterday claimed was undeclared and held in a "bogus" account was in fact declared to the Revenue.
Mr Duff invested £168,000 in CMI in August 1996 and a further £140,000 in December of that year - all of which he claimed yesterday was undeclared money.
Mr Cooney suggested to the court that it was incredible Ms Cooper-Flynn would have advised Mr Duff to invest legitimate money in off-shore accounts designed to evade tax.
Mr Duff, however, insisted his allegation against Ms Cooper-Flynn was not a fabrication.
Ms Cooper-Flynn is suing RTÉ journalist Mr Charlie Bird and retired farmer Mr James Howard of Wheaton Hall in Drogheda in Co Louth.
She claims she was libelled in broadcasts on RTÉ between June 19th 1998 and July 1st 1998 and words used on the programme claimed she had instigated a scheme the object of which was the evasion of the lawful payment of tax.
The case continues next week.