The High Court has frozen the accounts of a Dublin solicitors' firm after hearing that one of the partners in the firm used almost €2.5m of clients' money to gamble on stocks and shares.
More than half of that money had been due to go to the Catholic Church.
The court also heard that Ruairi Ó Ceallaigh of the firm Seán Ó Ceallaigh and Company, based in Phibsborough, double mortgaged four properties with a loan of €1.5m from AIB.
His brother, Cormac Ó Ceallaigh, who was also a partner in the firm, signed undertakings in relation to these properties.
Mr Justice Peter Charleton froze the firm's accounts and suspended the certificate allowing Ruairi to practice as a solicitor. He also ordered that Ruairi Ó Ceallaigh should not be allowed to dispose of any assets.
Mr Justice Charleton said there did not appear to be any dishonesty on the part of Cormac Ó Ceallaigh and he did not suspend his practising certificate. He allowed him two weeks to further clarify matters in relation to the undertakings.
Seán Ó Ceallaigh, 79, founded his solicitors’ firm 52 years ago. His sons, 39-year-old Ruairi and 37-year-old Cormac, were running the firm.
At the end of July, Ruairi told his brother Cormac that there was a big problem. Ruairi had drawn down a loan of €1.5m against four properties in 2007. But the loan was not used to pay off the existing mortgages on the properties.
He had used the money to buy shares and the bank was now making inquiries. Cormac had signed undertakings in respect of the properties.
The Court heard that Ruairi Ó Ceallaigh had a gambling problem and had also used €2.4m of clients' money to gamble on stocks and shares. €1.5m of this money was in the name of a client's estate and had been due to go to the Catholic Church in Dublin.
The Court was told the total liabilities of the firm could be in excess of €4m.
Lawyers for Cormac Ó Ceallaigh told the court he was left devastated by what had happened.
He said apart from his wife, his older brother, Ruairi had been his closest friend and he trusted him implicitly. He said his brother had breached the ethos bred into them by their father.
Mr Justice Charleton said what had happened was a blow against a distinguished family and the Court could only have sympathy for them. However, he said from the point of view of the trust placed by the public in solicitors, he was making an order freezing the firm’s accounts.
The case will be back before the High Court again in two weeks' time.
