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Tuesday 23 September 2014

Quinn case hears Russian firms paid daughter, two sons-in-law €881,000

Tim Healy

Published 31/01/2013 | 05:00

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A DAUGHTER and two sons-in-law of bankrupt businessman Sean Quinn were paid sums totalling about €881,000 in a year under contracts with Russian companies, a court heard.

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Colette Quinn received €340,000 while Stephen Kelly and Niall McPartland were paid €260,000 and €281,000 respectively.

The money was paid by companies in the family's international property group (IPG), the Commercial Court has heard. It went into accounts held by the three with Ocean Bank in Moscow, and money was withdrawn from ATMs in Ireland using Visa Cards.

Ms Quinn said she has few receipts showing what happened to €327,000 of the €340,000 paid to her over a year between 2011 and 2012.

Some of the money went for household expenses and petrol and some for legal fees, she said. She was not in the habit of keeping household receipts, and there was €12,500 left in the account last August.

She withdrew €16,000 in 20 transactions, mainly from ATMs in Belturbet and Cavan town, over a period of two hours last June 14, the court heard.

But she said she was concerned about being asked about the purpose of such withdrawals, both for legal and personal security reasons.

Irish Bank Resolution Corporation (IBRC, formerly Anglo Bank) had alleged she was in contempt of court orders which restrain any stripping of assets from IPG.

Mr Kelly said he was paid €260,000 from two Russian companies between May 2011 and June 2012. Some of it went on household expenses and legal fees for which he had not kept receipts, he said.

Trusted

Mr McPartland said he received €281,000 from three Russian companies. He has receipts for how he spent those monies, but did not believe he was required under the court orders to disclose them to IBRC.

The orders required him to disclose documents concerning his assets, plus any steps taken by him to put IPG assets beyond the bank's reach, and he said he had done that.

Shane Murphy SC, for IBRC, put it to him that the documents should be disclosed, but Mr McPartland disputed that.

He said he had not kept copies of his employment contracts with the Russian companies or of earlier contracts with Quinn Insurance.

His employment with the Russian firms was done through Sean Quinn Jnr, Stephen Kelly and Peter Darragh Quinn and he trusted them.

All three witnesses were being cross-examined by Mr Murphy in a preliminary application before Mr Justice Peter Kelly to the full action, in which IBRC alleges various Quinn family members were involved in a scheme to place IPG assets beyond its reach.

The full case has been adjourned pending criminal trials of former Anglo Irish chairman Sean FitzPatrick and two former senior executives of the bank. The cross-examination resumes next week.

Irish Independent

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