Monday 26 September 2016

Liquidator wants directors of firm that supplied credit unions to be pursued for losses

Published 23/06/2016 | 02:30

The business went into liquidation in 2014 owing €3m, about half of it to staff.
The business went into liquidation in 2014 owing €3m, about half of it to staff.

Directors of a company that provided financial technology to credit unions and banks fraudulently directed money away from the business, doctored invoices and kept trading on despite being insolvent with a "catastrophic" effect on creditors, the High Court heard on Monday.

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The liquidator of CU Plus Technologies Myles Kirby, of Martin Ferris & Associates, is seeking to have its directors Joseph Dowling and Margaret Dowling, made personally responsible for losses at the Meath-based company.

The business went into liquidation in 2014 owing €3m, about half of it to staff.

Barrister Gerry Meehan, for Mr Kirby, said the liquidator was claiming that the directors had continued to trade the business in 2012 and 2013 when it was clear it was becoming insolvent.

That had a "catastrophic effect on creditors," he claimed.

Money had been "fraudulently" directed away from the business, through the "doctoring of invoices", he claimed.

He asked Judge White to have the case dealt with as a matter of "urgency" and asked for the case to be added to the main Chancery court list. Solicitor for the Dowlings Owen Henson of Kane Touhy questioned that urgency. He said that the papers associated with the case were extensive, and that his clients had only just been given confirmation they will have access to the liquidator's files.

In response, barrister Gerry Meehan, said any delay in bringing forward the case was a result of engagement with the Office of the Director of Corporate Enforcement. Justice White said he had no difficulty in dealing with the application urgently, and listed the matter for a hearing on July 4.

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