Ex-stockbroker charged over €5.8m fraud
Stephen Pearson, a 43-year-old father of three, was arrested at 9.40am and brought to the Bridewell Garda Station in Dublin before being taken to Dublin District Court.
Pearson, who is now unemployed, was a junior partner in Cork's oldest stockbroking firm, W&R Morrogh of South Mall, which collapsed in 2001 with debts of almost €10 million.
Pearson is facing a series of charges under the Larceny Act and Forgery Act. They relate to the alleged forgery of share transfer forms, fraudulent conversion and false pretences on dates between 1995 and 2001.
In applying for bail, defence solicitor Michael Hanahoe told the judge that his client was aware for the past two years that charges against him were pending and that he had made himself available to gardaí at all times.
The case was adjourned until after lunch because Judge Miriam Malone said she was not satisfied that the accused's brother, Roger, of Bandon, Co Cork, had put forward share certificates as an independent surety. Mr Pearson's sister, Daphne, from Dundrum, Co Dublin, later provided an acceptable surety by producing a bank savings book.
The accused was remanded on his own bail of €5,000 and an independent surety of €15,000 to appear before the same court on September 23 for service of the book of evidence. Pearson will be sent forward for trial before a judge and jury at the Circuit Criminal Court on a later date.
The court heard that the accused would be seeking free legal aid as he was now unemployed and had no assets apart from his family home.
Under the Forgery Act 1913, he could face a jail sentence of up to 14 years if convicted.
The Central Bank-administered Investor Compensation Fund has already paid €2.2m to 579 of the 2,500 investors who lost money.
Clients of the firm, which is now in receivership, are still waiting for €16m in shares and assets to be released to them.
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