A man who allegedly operated a ‘pyramid’ investment scheme for several years and misappropriated millions to fund his personal lifestyle has agreed to a court order not to reduce his assets below €20m.
Breifne O'Brien, of Invergarry, Silchester Road, Glenageary, is said to be involved in the taxi business and his assets are alleged to include a house in Barbados.
He had within the last few days told Brian Quigley, a solicitor for several investors, that he had been ‘living a lie’ for up to 15 years in relation to investments made for others, including long-time friends of his.
Mr O'Brien had calculated his total liabilities to 11 people of between €16 and €19 million, Mr Justice Peter Kelly heard.
Mr O'Brien had also allegedly said he had appropriated some €4m to fund his personal and family lifestyle, a further €4m for payments of fictitious profits to other investors, a similar sum to keep his business interests afloat, and a similar sum to fund the purchase of various properties.
The investors had no knowledge of any of this, the court was told.
It was also claimed Mr O'Brien had said his method of operation was to seek money from one investor and, having promised that person a return, when the time came to pay, if he could not convince the person to invest in another transaction, he would seek a different investor and use their money to pay off the first investment and its fictitious return.
Mr O'Brien had allegedly said he repeated this process over a ten to 15 year period and that it was easy to ‘pull suckers in when the economy was booming’ but recent events made it impossible to continue this method of operation, Mr Quigley said in an affidavit.
Mr O'Brien had also admitted receiving investments for some €6m in the past two months and to using €5m of that sum to ‘repay’ one investor and €600,000 to another.
No information was given about the remaining €400,000, Mr Quigley said.
It was difficult to know what to make of Mr O'Brien's statements or their accuracy, he added.
The judge granted a freezing order against Mr O'Brien restraining him dealing with or reducing his accounts below €20m.
Gabriel Gavigan, for Mr O'Brien, agreed to an order in the terms sought.
The order applies to 12 January next and Mr O'Brien must also provide a statement of his assets.
The order was sought by a number of people, including an 88-year-old pensioner, who claim they were encouraged by Mr O'Brien to invest large sums in various property investments and do not know where their money has gone.
It is claimed monies invested were later misappropriated in circumstances of ‘admitted grave dishonesty’.
The plaintiffs also expressed concern that Mr O'Brien will move to conceal or dissipate their or his own assets prior to enforcement of any judgment which may be made against him as a result of their proceedings against him.
Mr O'Brien had said he intended now to deal honestly with the plaintiffs but he had not disclosed what the plaintiffs had learned appeared to be an imminent payment from his stockbrokers, Mr Quigley said.
The plaintiffs are David Bell (88), a pensioner of Kilgarth, Silver Birches, Dublin, and his son Peter Bell, a solicitor, of the same address who claim they invested more than €1m with Mr O'Brien for what they understood to be an investment opportunity related to lands in Co Meath.
Daniel Maher, a businessman of Kiltiernan Pines, Westminster Road, Foxrock, claims he invested some €450,000 with Mr O'Brien for what he believed was an investment opportunity in a property in Paris.
Louis Dowley, a farmer, of Tybroughey, Carrick on Suir, Co Tipperary and his brother and business partner, Robert Dowley, also a farmer, of Three Bridges House, Carrick on Suir, claim they invested some €4.2m with Mr O'Brien.
David O'Reilly, a businessman of Fassaroe House, Fassaroe Avenue, Bray, Co Wicklow, had invested sums of more than €4.2m, the court also heard. Mr O'Reilly knew Mr O'Brien as a college friend, it was stated.
A seventh plaintiff, Evan Newell, of Brighton Gardens, Rathgar, Dublin, said he had entrusted some €4.4 million to Mr O'Brien for investment purposes.
