O’Brien to face fraud probe

CORK-born businessman Breifne O’Brien is to face a Garda investigation over allegations that he operated a pyramid scheme that defrauded clients of millions of euro.

The High Court yesterday ordered that court documents relating to O’Brien’s business activities should be referred to the Garda Bureau of Fraud Investigation.

Mr Justice Peter Kelly yesterday issued five separate judgments, ordering O’Brien to repay almost €13m to clients, at a sitting of the commercial division of the court.

Meanwhile, O’Brien’s wife, Fiona Nagle, withdrew an application to allow her withdraw €4,000 per week to pay household bills after the judge refused her request to hear the matter in private.

The judge described O’Brien’s actions as “odious” and accused him of exploiting long-held friendships by getting schoolmates and college friends to invest in his schemes. He claimed there was “prima facie” evidence to suggest a series of criminal offences had been committed. Mr Justice Kelly said it appeared the plaintiffs were “victims of a confidence trick that was not very sophisticated but highly successful”.

O’Brien, 47, of Invergarry, Silchester Road, Glenageary, Co Dublin, admitted to the plaintiffs’ solicitor last month that he had been “living a lie” for the past 15 years over investments made for clients, most of which were close family friends. A regular in Dublin social circles, he allegedly claimed it was easy “to pull suckers in when the economy was booming”.

Mr Justice Kelly compared O’Brien’s actions to the crooked schemes operated by Montague Tigg and Chevy Slyme in Charles Dickens’ Martin Chuzzlewit, as well as the real-life Shanahan stamp scandal in Ireland from almost 50 years ago.

O’Brien’s case differed in that he sought to obtain money from friends rather than members of the public. The judge criticised O’Brien for convincing the elderly father of one of his friends to invest money with him.

In his favour, O’Brien had admitted his wrong-doing and had “fallen on his sword,” observed Mr Justice Kelly.

“It is a fairly unusual matter in the experience of this court and in Irish life for someone to admit wrong-doing,” he added.

Mr Justice Kelly issued judgments of €4.4m in favour of Evan Newell, of Rathgar, Dublin, more than €3.8m to David O’Reilly of Bray, Co Wicklow, €3m in favour of Louis and Robert Dowley of Carrick-on-Suir, Co Tipperary, €1.1m to David and Peter Bell, Dundrum, Dublin, and €450,000 to Daniel Maher, Foxrock, Dublin.

He also amended an existing court order and compelled O’Brien not to reduce his assets in the State to below €14.5m.