A Co Clare man described as the main person behind an attempt to defraud the Revenue Commissioners of £3.8 million pleaded guilty to the offence at Ennis Circuit Court yesterday.
Brendan Murphy (45), a father of five, of Fielbrook, Parteen, Co Clare, was charged with conspiring with Brendan O'Doherty (47), of Ballycarron, Enfield, Co Meath, and other persons not before the court to defraud the commissioners of £3,823,716 between January 1st and June 18th, 1997, by virtue of a false VAT return in the name of Unirock Enterprises Ltd.
The court was told that O'Doherty, who was serving a four-year jail term after being convicted in February, died in prison on August 14th. O'Doherty was described at Ennis Circuit Court in February as the "front man" of the elaborate scheme.
The court heard from Det Insp Patrick Byrne, of the Criminal Assets Bureau (CAB), that he was satisfied from his investigation that Murphy, a principal officer with the Revenue Commissioners was due to get £2 million from the fraud. Ennis Circuit Court heard in February that O'Doherty stood to gain £20,000 if it succeeded.
In statements from the accused read out in court by Det Insp Byrne, Murphy alleged that at one stage threats were made against him and his family, including one that he would end up under a coffin and that his name would be on a bullet if he did not take part in the fraud.
The statements also said that one alleged conspirator allegedly said that horse-riding was a dangerous sport for his daughter to be involved in. The court also heard that one of Murphy's co-conspirators had links with a leftwing paramilitary organisation.
However, Det Insp Byrne told the court that he did not believe the accused was under any duress or threats to become involved in the fraud, described as the largest fraud amount of its kind in the State. Det Insp Byrne told the court that, if threats were made, they were made by Murphy.
He said if the operation was successful, the money was to be placed at an AIB bank in Dublin and then transferred to an unnamed account in Austria.
Det Insp Byrne, who was in charge of the investigation, gave evidence of taking a statement from Murphy after arresting him on June 19th, 1997, at his office at Sarsfield House, Limerick.
He said Murphy became upset and started to cry when taken to Henry Street Garda station. This followed O'Doherty being arrested in Ennis the previous day where he was due to collect the cheque of £3,823,716 which had been drawn up and issued by the Revenue Commissioners.
This followed Mr Sam Gill, assistant principal officer of the Revenue Commissioners, double-checking the contents of the forged VAT return with the chairman of the Revenue Commissioners, Mr Dermot Quigley, shortly before O'Doherty was due to collect the cheque. Gardai were then alerted.
Shortly after his arrest on June 19th, Murphy made a statement in which he said he was a principal officer in the Revenue Commissioners and was in charge of VAT repayments and collection for half the country.
The statement said that he never accepted a bribe or inducement in any decisions he made in any official matters which came before him.
He said he was introduced to O'Doherty in January/February 1997, at a house in Artane, Dublin, where O'Doherty spoke about tax generally. He subsequently met him in Trim, Co Meath and O'Doherty seemed to know more about the tax system than he did previously. Another meeting took place in February/March 1997, where five or six people were present.
At this meeting, Murphy claimed, O'Doherty "pushed" for a lot of details as to how the VAT repayments system operated. He believed O'Doherty had given details to the other people present who realised if he was got at they could use him for a fraud.
One of the men asked him how his wife was and said that if his daughter still enjoyed horse-riding and that it could be a dangerous sport. At his stage, he realised he was in trouble.
During the conversation it was said that if he opened his mouth he would end up under a coffin. He stated effectively that what they wanted to know was how a VAT repayment claim was made from beginning to end.
At another meeting in Dublin, one of the men said they intended to make a false VAT claim and they wanted a copy of a fully certified claim which had gone through the system. Murphy said one of them had a revolver. He refused to give them a copy and never gave them a copy.
At another meeting, they produced a VAT return form and a covering certificate on which the inspector had authorised a repayment. Murphy told them the form had been incorrectly completed and that no inspector would complete it in this way. He was told that if the fraud worked, he would get half the proceeds and if it did not they would get his family.
At a further meeting, Murphy claimed, he was told: "All you have to do if something comes before you is to pass it or ignore it."
Murphy said he had a good idea that this claim might be a fraud and that it was an attempt to get back at the CAB.
Shortly after, a cheque for £3,823,716 was drawn up and issued by the Revenue Commissioners to be collected by O'Doherty at Ennis on June 18th, 1997, where O'Doherty was arrested.
Acting on half of Murphy, Mr Patrick MacEntee SC told Judge Kevin Haugh that he would be seeking an adjournment to allow medical and psychological assessments to be carried out on Murphy.
Judge Haugh acceded to the request, remanding Murphy on continuing bail until December 16th. Mr MacEntee told Judge Haugh that he would be reserving the right to question Det Insp Byrne on that date.