Former Morrogh partner defrauded clients of €5.7m
Mr Pearson, 44, who lives in Glanmire, Co Cork, pleaded guilty to 46 charges at the Dublin Circuit Criminal Court of fraudulently converting money for his own benefit, forgery and false pretences. He pleaded guilty to one charge of fraudulent conversion at an earlier court appearance.
Under the Larceny and Forgery Acts, Pearson faces up to 14 years in prison. Sentencing was adjourned until October 12.
The charges relate to money misappropriated from the accounts of 20 of the firm's clients. Pearson was the junior partner in W&R Morrogh of 74 South Mall in Cork which collapsed four years ago.
The court was told yesterday that between 1995 and 2001, Pearson took money from accounts held by Morrogh's clients to pay off losses he incurred trading the share futures and options markets.
The problems at Morrogh surfaced in April 2001 when the company failed to file an annual return with the Central Bank. After the irregularities were revealed Pearson disappeared. He was soon found with his wrists slashed in a Dublin hotel in a suicide attempt. He was later treated in St Patrick's Hospital and also attended rehabilitation centres in Dublin and Cork, where he was treated for gambling addictions.
Giving evidence before Mr Justice Desmond Hogan, Detective Sergeant Denis Heneghan of the Garda Bureau of Fraud Investigation, said clients of Pearson had suffered major losses because of Pearson's actions.
Donal O'Donnell SC, for Pearson, said his client accepted responsibility for his actions and had co-operated with the garda inquiry. He had not personally benefited from the fraud.
Mr O'Donnell said Pearson was unemployed and caring for his three children, one of whom was severely disabled. Pearson's wife, Peggy, worked 17 hours a week as a part-time intensive care nurse and the family survived on social welfare.
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