Stokes brothers used €146,000 of firm's cash in spending spree
TWO brothers spent almost €146,000 on personal expenses using money from their now wound-up restaurant, the High Court has heard.
Bang Cafe in Dublin was wound-up last year with debts of €2.4m -- but Simon and Christian Stokes spent the €146,000 over an 18-month period to June 2009 on expenses including hotels and restaurants in Ireland, London, Denmark and Barbados.
The brothers also ran the Residence private members' club in Dublin, which also went into receivership last year.
Yesterday, the brothers agreed to court orders restricting them from acting as directors of companies for the next five years unless those companies meet minimal capital requirements.
Mayfair Properties Ltd, the Stokes company which operated the Bang Cafe, also owes more than €470,000 to the Revenue, the court heard.
A separate application by Tom Murray, liquidator of Mayfair Properties Ltd, seeking to disqualify the brothers from involvement in the management of any company, on grounds of being unfit, was adjourned for three weeks.
An examination by Mr Murray of credit card statements between January 2007 and June 2009 showed large sums of Mayfair company monies were used to pay personal bills incurred by Simon Stokes at hotels, restaurants and a range of stores in Ireland and abroad, the court heard.
They included €2,421 to the Coral Reef Club, Barbados; €1,891 to Blakes Hotel in London; €4,425 to the Gucci Store in New York; €2,000 to the Professional Golfers' Association in Blackrock; €2,277 to the Skovshoved Hotel Denmark; €2,621 to Brown Thomas in Dublin and €6,494 to Pia Bang Interiors in Dublin.
Credit card payments in the name of Christian Stokes between January 2007 and June 2009 included €3,835 to Ashford Castle; €2,091 to Maroma Resort & Spa in the Caribbean and €2,011 to the Skovshoved Hotel, Denmark.
Mayfair was incorporated in 1997, began trading in 1999 and operated the Bang Cafe until it was wound up in January last year. The restaurant has since re-opened under new ownership.
In an affidavit, Mr Murray outlined several concerns about the operation of Mayfair including outstanding Revenue payments, personal use of company credit cards, inter-company loans and failure to submit accounts to the Companies Registration Office.
Mr Murray said the company should have been liquidated earlier.