Compensation deadline looms for investors in Custom House
Published 14/03/2012 | 05:00
INVESTORS in the collapsed investment firm Custom House Capital have until March 23 next to apply for compensation under a State scheme.
So far, 1,100 applications have been made for compensation to the Investor Compensation Company (ICCL).
Chief operating officer of ICCL George Treacy said compensation would be paid to eligible investors.
"We will pay clients 90pc of the money they have lost, up to a maximum of €20,000 to each investor," he said.
"The deadline for submission of claims is fast approaching and we urge all clients of Custom House Capital who have not already submitted application forms to do so without delay."
Lawyers, accountants, doctors and business people are among the 1,600 who are at risk of losing millions after the collapse of the investment firm Custom House.
Last October, the High Court appointed a liquidator to the Dublin firm after Central Bank inspectors found "systemic and deliberate misuse" of more than €56m in client funds.
The firm was using client funds, without their knowledge, to prop up property investments.
In an explosive 200-page report by two High Court inspectors, it emerged that key Custom House executives misused customers' funds, misled investors and gave inaccurate information to the Financial Regulator.
Mr Justice Gerard Hogan said the report described "a sort of an Irish Ponzi scheme" and he ordered copies of the report be furnished to Justice Minister Alan Shatter, the Director of Public Prosecutions, the Director of Corporate Enforcement and the Garda authorities
The report reveals that money was moved out of cash funds and transferred to property deals without the permission of clients.
Fifty six million euros was transferred to property syndicates, mainly in Germany and France.
The report makes it clear there was "systematic and deliberate misuse of assets and cash" belonging to customers.