Financial adviser is banned after admitting to taking client funds
THE former partner of a Galway financial brokerage has been banned indefinitely by the Central Bank from having any function in a regulated firm over what was described as the misappropriation of client funds.
Paul Tarpey, who was the partner in Costello & Tarpey Financial Services, failed to act honestly, ethically and with integrity, according to the Central Bank.
The financial services firm has since been dissolved. He has been prohibited indefinitely from carrying out any controlled functions, including pre-approval controlled functions, in any regulated financial service provider.
"The prohibition arises from a Central Bank investigation into the misappropriation of client funds by Mr Tarpey during his time at Costello & Tarpey Financial Services," the regulator said in a statement.
An indefinite ban is the most serious outcome when the Central Bank conducts an investigation under its fitness and probity regime. Central Bank director of enforcement and anti-money laundering Seana Cunningham referred to what she called a statement of undisputed facts, signed by the former financial adviser. She said this document "clearly demonstrates Mr Tarpey's failure to act honestly, ethically and with integrity".
Ms Cunningham added: "This case should serve as a reminder that the Central Bank will prohibit people who act dishonestly."
The Central Bank prohibition arose from a whistleblower tip-off to the regulator in 2016. Mr Tarpey misappropriated two cheques totalling €31,711 from a client. The money was supposed to go into a pension fund.
One of the cheques had been altered by Mr Tarpey to make him the payee. The money has since been returned, and compensation of €13,289 paid.
When the regulators began probing the financial firm, Mr Tarpey's solicitors wrote to the Central Bank admitting he had misappropriated funds.
Medical reports on Mr Tarpey were submitted to the Central Bank by his solicitors. It is understood Gardaí are not currently investigating Mr Tarpey.
Others banned by the Central Bank from acting in financial services firms include the former manager of the now closed Rush Credit Union Anne Butterly, the former assistant manager of the same controversial credit union Geraldine Harford, former director of Citybus Employees' Credit Union David Stamper, and former director of a Tipperary financial firm Darren Gleeson.