Businessman told he must repay €4.4m to investors
AN Ennis businessman who was accused of running a "pyramid scheme" has consented to an order banning him from being a company director for eight years.
Businessman Jal Kalsi was also ordered to repay more than €4.4m to small investors. This week, 60 investors who advanced loans to Mr Kalsi's MPS Global Ltd received letters outlining a settlement between the Ennis businessman and Myles Kirby, a liquidator appointed to wind up his investment company.
MPS Global was set up to invest in overseas properties.
Mr Kalsi was at one time the head of Ennis Chamber of Commerce.
Mr Kirby told investors Mr Kalsi had consented to a settlement that disqualified him as a director for eight years. The liquidator had previously described MPS Global in court as little more than a pyramid scheme.
The order, which was approved by the High Court, says Mr Kalsi must repay €4.49m owed to investors and has had his assets frozen until the debt is repaid.
Because Mr Kalsi consented to the order, a trial scheduled for June 22 will not now go ahead. The court made the order after both parties had agreed a settlement deal.
Under the settlement, the liquidator agreed not to try to collect the full €4.49m owed, if Mr Kalsi can repay €500,000 within the next nine months, or €800,000 over the next year.
Mr Kirby said he agreed to the settlement because he had not been able to fund assets that could be used to repay MPS Global's debts, but believed the settlement funds would give him the means to launch a full search for assets.
During court hearings before the settlement was reached, lawyers for Mr Kalsi told the court the businessman's assets were worth far less than his liabilities.
His lawyers said he was being supported by relatives.