Stockbroker victims claim their shares

IRISH Financial Service Regulatory Authority (IFSRA) chief executive Liam O’Reilly is facing legal action from disgruntled clients of failed stockbroking firm W&R Morrogh unless he orders the firm’s receiver to return €10m in shares to the investors.

Investors who have close to €16 million in shares and cash tied up in the receivership process since the firm went to the wall three years ago have adopted a new tactic to get their hands on their property.

Out-of-pocket Morrogh client Liam Shorten said they believe that Mr Grace should have released their shareholdings to them shortly after the firm went into receivership as, under the Stock Exchange Act 1995, the receiver took up the role of the stockbroker.