‘Deliberate dishonesty by Anglo’ in US hotels deal

THE “cavalier” ethos and attitude displayed by Anglo Irish Bank in promoting and managing an investment fund for two hotels in New York’s Manhattan district “readily explains how Anglo single-handedly brought this country to the position it finds itself in“, the Commercial Court was told.

A “Black Brochure” given to 50 high net-worth Irish individuals in September 2006 aimed at encouraging them to invest in the hotels fund failed to disclose key risks involved and amounted to “conscious and deliberate dishonesty”, one of those investors, Gerard McCaughey has claimed.

The brochure estimated the hotels’ renovation costs at some $25 million (€18.3m) but these turned out to be $103m (€75.4m) which was well beyond the fund and led to works being halted, it is claimed.