At least €3.7m unaccounted client funds discovered in investment firm

A forensic accountant's review found that clients were misled into believing they had investments held with certain funds or 'product producers' when their monies were paid to accounts associated with Strand Investments and Finance Ltd, and Bernard Kinahan

The High Court judge said this was a very serious matter and wondered if it was indicative of a Ponzi scheme.

At least €3.7m in client funds of an investment firm — whose owner died of a heart attack last August — are unaccounted for in what appeared to be serious misappropriation of the monies, the High Court heard.

Strand Investments and Finance Ltd, trading as 123 Financial Services, Athlone, Co Westmeath, was owned by Bernard Kinahan, of Elm Close, Barrybeg, Roscommon Road, Athlone, who died on August 31. He was a director of the firm along with Ken Kinahan who now says he actually had no involvement in the management of the company.