Court rules convicted drug dealer bought Cheltenham-winning horse with proceeds of crime

The High Court has ruled that a convicted drug dealer bought 90% of the Cheltenham-winning horse Labaik with the proceeds of crime.

In a case taken against John Boylan, 33, aka John Power, of Forest Hill, Rathcoole, Co Dublin, the court also found that a west Dublin property, refurbished at a cost of €630,000, a bank account containing €77,900, a mobile home worth €33,000, and a 2015 Mercedes Benz E Class were acquired with the proceeds of crime.

Mr Boylan, who runs an animal feed business and claimed he earned "considerable sums" gambling, denied the allegations. He purchased his stake in the racehorse for €28,000 in April 2016.

However, at the High Court this afternoon Ms Justice Carmel Stewart ruled that an examination of Mr Boylan’s finances shows a “substantial shortfall” which has left her with the “inescapable conclusion” that the items were directly or indirectly the result of the proceeds of crime.

The judge also dismissed plenary proceedings which Mr Boylan took against CAB, which was represented by Benedict Ó Floinn BL.

Ms Justice Stewart noted that in an affidavit to the court, Mr Boylan said he set up Forest Hill Animal Feeds Limited in June, 2016 and still works for this company, earning €419.56 per week.

She said he also claimed he “earned considerable sums from gambling”.

Mr Boylan, the court heard, also presented the following as a way of outlining his means: a cheque of €15,840.91 paid to him by Paddy Powers Bookmakers in February 2016; receipt of €25,000 for the sale of of two piebald horses in January 2016; sums lodged to his bank account of €13,000 from his mother, €10,000 from his partner and €17,500 from his godmother, which he used to fund the deposit on his family home; and a Volkswagen Golf which he bought for €19,450 in mid-August 2017.

The court heard Mr Boylan’s partner Leonie Kinsella tell the court, in an affidavit, that Mr Boylan was the main earner of the household but that she also earned money from hairdressing. She said she set up a hairdressing business in May 2016.

'Substantial shortfall'

However, in her 24-page written judgment, Ms Justice Stewart found: “There remains a substantial shortfall which leads this court to the inescapable conclusion that the assets the subject of these proceedings were acquired, in whole or in part, with or in connection with property that, directly or indirectly, constitutes the proceeds of crime and further that the property constitutes directly or indirectly the proceeds of crime.”

The judge also noted that an analysis of the couple's finances between 2013 and 2017 left a shortfall of income of almost €30,000 without taking into account the €629,911 refurbishment of the house in Rathcoole in March 2015.

She told the court that Mr Boylan made “no substantial engagement” with the financial details of the case and that his response “amounts to little more than a denial”.

Labaik

Mr Boylan brought the proceedings against CAB claiming he suffered a financial loss arising out of an injury the horse sustained at a race on April 28, 2017.

He claimed it was CAB’s decision for the horse to race.

He also sought to claim damages for negligence and/or breach of duty, damages for breach of statutory duty, damages for misfeasance in a public office and, finally, aggravated and/or exemplary damages arising from the decision to race.

He contended CAB had a statutory duty to preserve the value of assets it seizes.

Mr Boylan had alleged that he intended to sell Labaik after its Novice Hurdle win at Cheltenham in March 2017.

He further claimed that this sale was prevented by CAB as it had prevented him from dealing with the horse after it seized its passport.

However this afternoon the judge said the extent of the injury was “exaggerated” by Mr Boylan.

She also found the value which Mr Boylan gave the horse was “exaggerated and, at a minimum, speculative”.

CAB acted appropriately

Ms Justice Stewart also said CAB had acted appropriately and she was satisfied there was no mala fides or any act of negligence committed by CAB - as alleged by Mr Boylan.

She also said the decision to run the horse in Punchestown in April 2017 was made by Mr Elliott and facilitated by CAB

The judge also said she found Mr Elliott be a “truthful and candid witness”.

Labaik shocked the racing world when he won the Supreme Novice’s Hurdle at Cheltenham in March 2017 at odds of 25/1.

The horse's passport was seized by CAB officers the following month, which meant the horse couldn't travel.

It was handed back to Grand National-winning horse trainer Gordon Elliott, who has no involvement in crime and whom the court heard owns 5 per cent of Labaik, ahead of the Champion Hurdle at Punchestown in April 2017, where Labaik suffered an injury.

Mr Boylan had previously told the court that it was a “scandalous” decision to run the novice horse in the Champion Hurdle, claiming it was like 10-year-olds playing football against 18-year-olds.

However when Mr Eliott gave evidence to the court in April of this year, he responded to this claim by saying everyone in the horse racing industry had an opinion.

He said: “In my view the horse was the second or third favourite. There wasn’t much between him and the other horses in the race.”

He said Labaik could become very valuable again.

At a previous hearing, the court heard Detective Garda Lisa McHugh say, in an affidavit read to the court, that Boylan had 67 previous convictions, including two drugs offences.

At the end of today’s proceedings, the court heard that the horse is free to race and there may be plans for it to race in November or December of this year.