A US national based in Dublin, who is suspected of involvement in an alleged $1.9 million (€1.47 million) healthcare fraud in the US, has brought High Court proceedings aimed at securing access to some $100,000 (€77,400) frozen in a bank account here.
Robert Burns, a chiropractor, with an address at Lower Camden Street, Dublin, is also seeking damages.
Mr Justice Paul Gilligan heard yesterday the money had been lodged into an account in Bank of Ireland's Athlone branch in the name of Mr Burns's partner, Marta Natonieweska, about July 10th, 2005, and later paid into an account in Mr Burns's name at the bank's branch in Dún Laoghaire.
However, the bank had refused to pay out the money after receiving a letter on August 22nd from Det Séamus Padden, stating that gardaí were inquiring into "suspected criminal activities, including money laundering" and into Mr Burns's assets, and directing the bank not to deal in any way with the account without the consent of the Garda.
Mr Burns's full action against the Bank of Ireland, the Garda Commissioner and the State opened yesterday before Mr Justice Paul Gilligan.
The judge heard that the Supreme Court had last year overturned a High Court order for Mr Burns's extradition to the US.
In his statement of claim, Mr Burns said he had received a cheque for $95,890 (€74,200) from Mony Life of America, Syracuse, New York, on June 22nd, 2005, relating to a life insurance policy he had with that company.
He said Bank of Ireland's Athlone branch had accepted that cheque for clearance on July 10th, 2005, for the purpose of lodging it to the account there of his partner, to whom he was then about to be married. He said the cheque was cleared on August 5th, 2005, but when he contacted the bank about it, he was falsely told it had not cleared.
His solicitor was told by the bank on August 20th that the cheque had been cleared and paid into a current account opened in Mr Burns's name at the branch in Dún Laoghaire.
Several times after that, he had sought to withdraw all or part of the money but the bank refused to pay it out, contending it had been "directed" by a member of the Garda to "freeze" the account.
A Garda letter to the bank's headquarters on August 22nd, 2005, said gardaí were investigating "suspected criminal activities". There was no such investigation, it is claimed. It is also claimed the "real objective" was to make life so difficult for Mr Burns here that he would be forced to abandon his intended marriage and/or leave the State.
Dr Michael Forde SC, for Mr Burns, said that section 31 of the Criminal Justice Act (1994) gave no authority to a garda to direct the bank to freeze Mr Burns's account and, if it did grant such authority, it was unconstitutional and in breach of the European Convention on Human Rights.
It is contended that Mr Burns had sustained loss and damage. He is seeking damages against the bank alleging deceit, negligence and breach of contract and is seeking damages against the Garda Commissioner and the State. The defendants deny the claims.
The State defendants said gardaí were informed by the US authorities that Mr Burns had been sought by the US government to stand trial for charges relating to a $1.9 million healthcare fraud.
They also pleaded that inquiries in the US had revealed that the life insurance policy was taken out in 1996, at the time of the alleged fraud, and it was believed the annuity was funded, at least in part, with the proceeds.