US national sues bank, gardaí and State over frozen Irish funds

THE High Court has reserved judgment on proceedings brought by a US national, who is based in Dublin, after gardaí directed Bank of Ireland to “freeze” $100,000 (€77,000) in an account here.

Robert Burns, a chiropractor with an address at Lower Camden Street, Dublin, whom the court was told is suspected of involvement in an alleged $1.9 million (€1.4m) healthcare fraud in America, is seeking access to the frozen monies and damages.

The Supreme Court has in separate proceedings refused to order Mr Burns’s extradition to the US.

Mr Justice Paul Gilligan heard that $95,890 was lodged into an account in Bank of Ireland’s Athlone branch in the name of Mr Burns’s partner, Ms Marta Natonieweska, around July 10, 2005, and later paid into a bank account in Mr Burns’s name at the BOI branch in Dun Laoghaire.

The bank refused to pay out the funds after being directed by a detective garda not to do so without garda consent as the force was inquiring into “suspected criminal activities, including money laundering”, and into the assets of Mr Burns.

Mr Burns took High Court proceedings against Bank of Ireland, the Garda Commissioner and the State. He claimed he had received a cheque for $95,890 from Mony Life of America, in Syracuse, New York, on June 22, 2005, relating to a life insurance policy he had with that company.

BOI’s Athlone branch had accepted that cheque for clearance on July 10, 2005, for the purpose of lodging it to the account there of his partner, to whom he was then about to be married, and the cheque was later paid into a current account opened in Mr Burns’s name at the BOI branch in Dun Laoghaire.

In his action, Mr Burns claims Section 31 of the Criminal Justice Act 1994, if it gives authority to a garda to direct the bank to freeze Mr Burns’s account, is unconstitutional and in breach of the European Convention on Human Rights.

All the defendants deny the claims and the garda and State defendants plead payment of the monies would be legally capable of constituting an offence of money laundering.