Disclosure claim over Anglo hotels fund

ANGLO Irish Bank told investors who invested $50 million (€36m) in its New York hotels investment fund there was no other planned hotel development in the relevant area of Manhattan, although Anglo had provided funds to refurbish another hotel in the area, a court was told yesterday.

The “black brochure” about the fund given to potential investors by Anglo in September 2006, had stated there “is no planned hotel development in Midtown East” but Anglo was involved in funding the refurbishment of the Crown Plaza Hotel nearby, Martin Hayden, counsel for investor Gerard McCaughey, told the Commercial Court.

Mr Hayden said Timothy Haskin, the US businessman who was Anglo’s general partner in the fund, had emailed the bank in August 2006, saying zoning issues related to the hotels should be disclosed to the investors. Mr Haskin had also asked the bank not to send out the brochure to the investors until issues were resolved.