The author of a 1990 letter that referred to “hot money” told the jury at the Beverley Cooper-Flynn libel action that the letter was never circulated because of the Gulf Crisis. Ms Cooper-Flynn had already denied receiving this letter. Patrick Cooney, former investment adviser with NIB's Financial Advice and Services Division, said that the reference to “hot money” did not have the same implications then as it has today.
It was Patrick Cooney's custom to circulate a covering letter with the quarterly bulletin to the sales team in NIB's Financial Services Division. Beverley Cooper-Flynn, one of the sales team, denied under cross-examination that she had ever received a letter, which began "Hi Guys" and dated July 30 1990 from Mr Cooney. He explained today in the witness box that he never sent it. The emerging Gulf conflict threw the money markets into crisis and this letter stayed on file.
In the body of the letter, there is a reference to people whose money is "hot". This reference, Mr Cooney explained today, meant “a hot prospect for investment”. It did not, nearly eleven years ago, refer to undeclared funds. Mr Cooney said that hot money was not an expression he would use today. However, this was 1990 and the Financial Services team members were young and aggressive. They had mobile phones when nobody had mobile phones. They were high-fiving when they got good cases.
“Live or by mobile phone,” Senior Counsel Paul O'Higgins told him, “We are not on the same wavelength.” He put it to Mr Cooney that his words could not possibly have the meaning that he claimed. Mr Cooney disagreed. He also rejected suggestions that customers’ identities were hidden in the CMI Personal Portfolio. “All details were in black and white in the file,” he said. The hearing continues on Monday.
