CREDIT UNION PROBE OVER UNREGISTERED AUDITORS - Reports that some credit unions may have used unregistered auditors over recent years are to be investigated, the Irish Independent understands. The Office of the Director of Corporate Enforcement, led by Paul Appleby, is investigating a large number of cases of companies who used auditors not on the official register compiled by the Irish Companies Registration Office (CRO). In some cases, companies have allowed people to pretend they are auditors and still sign off on accounts, while in other cases the name of an auditor has been used, even though that person never signed off on the accounts in question. Credit unions are not limited companies in the normal way and are regulated by the Registrar of Friendly Societies. However, they do have to publish accounts, which are circulated to their members. It is understood the accountancy bodies, which work closely with Mr Appleby's office and the CRO, are aware of reports that some credit unions may have used unregistered auditors, but no definitive proof of this has emerged. Unless there is some kind of logistical reason a registration is not made, using an unregistered auditor is a breach of the Companies Act 1990 and can be prosecuted. The newspaper understands the CRO will use an IT solution to try and drive out the practice of using unauthorised auditors.
***
SEÁN DUNNE'S WIFE INITIATES PROCEEDINGS AGAINST US LAWYER - Gayle Killilea Dunne, the wife of property developer Seán Dunne, has initiated legal proceedings against her New York immigration lawyer over $500,000 she wants returned to her. Ms Dunne initiated proceedings in the Supreme Court of New York State against Philip Teplen of New York firm Teplen Associates in December, says the Irish Times. In her complaint she said she was living in the state of Connecticut and that, in November 2010, she engaged Mr Teplen to "prepare and submit an investment visa application" on her behalf. She said the visa "was to be used in connection with a potential real-estate property investment Dunne was planning to make in Chicago, Illinois. The downpayment for this investment was anticipated to be $500,000". She said Mr Teplen advised her to place such an amount in an escrow account of his firm as this would bolster her visa application. However, she subsequently decided not to proceed with the Chicago investment and told Mr Teplen to return $170,000 of the money, saying she needed it for an alternative investment. When the law firm failed to return the money, she said she sought the return of the entire amount. At the time of her filing her complaint, she said, the money had not yet been returned. She also said she had been told the money was no longer in the account. Ms Dunne is seeking in excess of $500,000 in damages.
***
PROFITS RISE FOR RESTAURANT AND SUPERMARKET CHAIN - South Dublin supermarket and restaurant chain Donnybrook Fair saw profits increase last year, with growth expected this year, writes the Irish Examiner. Pre-tax profits at the business increased slightly from €295,305 to €296,563 according to accounts filed for the year to the end of January 2010. Gross profit was down slightly from €6.4m to just more than €6m. Operating profit was down from €432,119 to €364,916. The accounts said that the results for the year were considered satisfactory by the directors who expect growth in the coming year. The directors did not recommend payment of an ordinary dividend. Joe and Mary Doyle are listed as directors. Remuneration including pension contributions increased from €40,000 to €40,110 in the year. At the end of the year there were 130 staff employed at the business, down one from the previous year. Staff costs fell from €3.7m to €3.4m in the year. The Donnybrook Fair business empire - in its current guise as multi-location upmarket convenience store, with one additional restaurant facility - started in 2002 after its owner Joe Doyle upgraded the standard convenience store on Morehampton Road in Donnybrook.
***
SEC MAY FORCE FACEBOOK FLOTATION - Facebook might be forced by US regulators to take the social networking company public as new investors pile in, says the Guardian today. "It's a lot easier to go public than to be public," observed veteran technology investor Frank Quattrone last year. That insight might prove doubly prophetic for Facebook, which is under fresh scrutiny about when it might take - or be forced to take - the social networking company public following a fresh $500m (£320m) round of investment led by Goldman Sachs. That has valued Facebook at $50 billion - as big as Tesco. Joined by the Russian tech investment firm Digital Sky, which put $50m into the deal, Goldman has structured it as a new investment product. Clients can buy a chunk of Facebook equity by investing at least $2m, and have to agree not to sell shares until 2013 and not to trade in secondary stock markets. It is a deal that has prompted scrutiny of the rules on US initial public offerings. The securities and exchange commission (SEC) stipulates that firms with more than 499 shareholders must go public, though Facebook won an exemption from this ruling in November 2008 by saying most of its shareholders were staff. Outside Facebook, though, nobody knows for sure how many investors it has.
