Friday 9 December 2016

U2 bassist Clayton sues his former accountant for €10m investment losses

Tim Healy

Published 16/10/2015 | 02:30

U2 bassist Adam Clayton and his wife Mariana Teixeira
U2 bassist Adam Clayton and his wife Mariana Teixeira

U2 bass guitarist Adam Clayton has sued his former accountant, Gaby Smyth, for more than €10m losses, plus damages, as a result of several failed investments.

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Mr Clayton alleges he relied on Mr Smyth as his accountant between 2001 and 2010 for financial and investment advice.

Mr Clayton claims Mr Smyth negligently and in breach of duty advised him to enter high-risk investments when the musician did not want to do so.

Mr Smyth, of Wyvern, Killiney, Co Dublin, denies negligence or acting as Mr Clayton's financial and investment adviser as alleged.

He says he acted as the musician's personal accountant and tax agent and Mr Clayton's former personal assistant, Carol Hawkins, prepared his financial reports.

Mr Smyth said he sometimes gave his opinion on investments either entered into or contemplated by Mr Clayton.

Mr Clayton's first case, initiated in 2011, involves a claim for €4.2m losses allegedly suffered by Mr Clayton after he, allegedly on the advice of Mr Smyth, invested in two funds.

He invested €1.2m in the Friends First Orion fund, focusing on the UK and Northern Ireland, and €3m in the Friends First Crystal fund, focusing on potential development land mainly in Munster and Connacht.

In the second case, initiated in 2013, Mr Clayton claims Mr Smyth has a liability for some €5.37m losses after he invested in the Timisorara Partnership in Romania.

He also says Mr Smyth has a liability for €1.05m losses arising from an investment in a European Hotel Consortium in Belgium, and for some €270,000 arising from his investment in a pharmaceutical firm.

In a pre-trial application, Mr Smyth wants the High Court to quash a decision of February 2014 allowing the continuing prosecution by Mr Clayton of the 2013 case.

The case was adjourned until November.

Irish Independent

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