Over €200,000 belonging to the charity Console was spent in 2015 using credit cards controlled by Paul Kelly, the founder and former CEO, his wife Patricia and their son Tim, the High Court heard today. The court also heard that “...expenditure... was incurred on the credit cards” of the suicide bereavement counselling charity “up to and including last weekend” and that “this case involves a tactical and considered web of deceit” and “a prolonged abuse of public trust and public monies.”
An RTÉ Investigations Unit report revealed serious governance concerns at the charity on June 23rd.
In an affidavit, interim CEO David Hall noted that purchases included meals at establishments such as London’s five-star Goring hotel as well as thousands spent on groceries in supermarkets such as Tesco and Marks & Spencer. Thousands more were spent on Uber taxis, travel, electronics and Ticketmaster. Mr Hall stated he was “concerned that such spending may not have been to the benefit of the charity.”
Paul Kelly was absent from the proceedings because he has been admitted to a psychiatric hospital, the court heard. Patricia Kelly, however, was present.
An unpublished HSE audit, the details of which were revealed by the RTÉ Investigations Unit on June 28th, found credit-card spending of over €464,000 in the three years from 2012 to 2014 by the Kellys, much of which appeared unrelated to the charity’s mission of providing counselling services. Today’s affidavit by Mr Hall revealed high levels of spending continuing into 2015 with a total of €202,865 spent using Console Credit cards by the Kelly family, including one card held in the name of a former employee who previously worked with Console but which was stated in the HSE audit to be under the control of Paul Kelly.
Total spending on two credit cards controlled by Paul Kelly reached €103,815 in 2015. Outlay on one of the cards totalled €41,151 and included items such as a monthly spend on Netflix subscription of €8.99 listed under “Training and Education” in Console’s records as well as spending of €325 on Ticketmaster listed as “Centre expenses.”Additional spending of €7,171 which included “Tesco and Supervalu on a weekly basis” was also listed as “Centre” expenses. The affidavit also outlined spending on dental work of €240, meals of €3,234 as well as travel of €6,247 in the period.
Mr Hall’s affidavit noted that it was “interesting to see ATM withdrawals in Clane [Co. Kildare] for Mayo, Sligo centres etc.”
Spending on the credit card in the name of the former employee reached €62,664. That figure included more dental costs (€280) and purchases at Currys and DID of €1,905 that was listed under the category of “Repairs.” Card spending at Tesco, Supervalu, Newbridge Silverware and Tower Records and other establishments of €7,988 was listed under “Fundraising” costs.
Patricia Kelly’s credit-card spending reached €35,298, including cash withdrawals of €3,320 listed as Petty Cash and Local Property Tax of €749.
Tim Kelly spent €63,752 using a credit card paid for by the charity in 2015, including €4,193 spent on meals at establishments such as the 5-star Goring hotel near Buckingham Palace in central London and a further €14,627 on travel, including flights and Uber, the High Court heard. Other spending included purchases on Amazon as well as Habitat and House of Fraser retailers.
Interim CEO David Hall was granted orders freezing all the assets of Paul, Patricia and Tim Kelly as new assets had been discovered and were being "moved in different ways."
Mr Hall’s affidavit stated that he had “been informed by staff at the charity that the charity has an interest in a property in Oughterard in Galway and yet no documents in relation to same have been furnished to me by Mr Kelly or Mrs Kelly. I believe this to be an eight bedroom property with five en-suite rooms.”
He also said he was “currently investigating and making further enquiries in relation to properties of the charity in Dublin, Cork and Tralee and elsewhere. I have reason to believe that there are numerous properties around the country.”
The court was also asked to add Tim Kelly to the legal proceedings as a defendant by Console as it has “now come to our attention that he appears to have been directly engaged in elaborate spending on the credit cards of the charity which have not been explained....”
The court also heard that a search of a lock-up in Kildare on Monday revealed documentation relating to property apparently belonging to Console and placed there by Paul and Patricia Kelly. It included “300 hanging folders for filing cabinets, 30 desk folders, 50 ring binders, a Dell laptop, 25 cheque books, a petty cash box, 40 keys, a briefcase; numerous CDs, DVDs and photographs.”
The court also heard that Paul Kelly and Patricia Kelly had not handed over login details, access codes or passwords of a Paypal account “which is intrinsically linked” to Console and which appeared to hold €1,500.
Mr Hall’s affidavit stated that he had “lost any remaining confidence in the bona fides of Mr. Paul Kelly and Mrs. Patricia Kelly and where it appears that assets and property of the company were hidden.” Mr Hall said he was “concerned that they may seek to move further assets beyond the Plaintiff’s control. Further, it appears that there is a clear indication that they are not willing to cooperate with the Court and that they will go to considerable lengths to frustrate the actions of the Plaintiff in seeking to have monies returned.”
Paul, Patricia and Tim Kelly were ordered to provide a list of all bank accounts and financial accounts controlled by them. Paul and Patricia Kelly were ordered to give details of any assets transfers since 01/01/2012.
Patricia Kelly was asked as she left the court buildings if she had anything to say to those who donated to Console, but she declined to comment.
