independent

Monday 21 April 2014

Young Priests sue Bloxham over failed €1m investment

ST JOSEPH'S Young Priests' Society is seeking damages from Bloxham Stockbrokers in relation to an investment of €1.2m in an investment product that went wrong.

The Dublin-based society, which fosters vocations to the religious life, is the latest party to emerge as suing the stockbrokers in relation to this product, which is known as the Dresdner Bond.

Bloxham has sued Morgan Stanley, a banking giant, and others in relation to the bond, which was billed as a low-risk investment but ended up losing investors a lot of money.

St Joseph's did not return calls for comment on Friday but it is listed as among the parties pursuing claims against Bloxham.

Investors reached a settlement with Morgan Stanley in relation to the Dresdner bond in June 2012 in London but there are six other legal complaints which Bloxham's liquidator still has to deal with.

Bloxham's liquidator, Kieran Wallace of KPMG, plans to continue taking legal action for up to €30m against Bloxham's insurance broker, Robertson Insurance Ltd.

Bloxham's claim is that Robertson failed in its duties to arrange and recommend adequate professional indemnity insurance for the stock-broking firm. Robertson intends to defend this claim.

Last week, in a High Court update, KPMG outlined all the various cases. It said it was continuing to work with the Central Bank and the Irish Stock Exchange to try and realise some value from its shares in the exchange. It is also carrying out a full investigation into the accounting irregularities which caused the firm to go into liquidation and the role of Bloxham's auditors.

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