Fraudster ‘still living lavish lifestyle’

A businessman who defrauded a local authority of a six-figure sum in a parking disc and bin tags’ scam is still living a lavish lifestyle.

Karl McCaughley, aged 38, admitted to having a passion for cars and had owned two Porsches, one Mercedes 4x4, and one Landrover. Last week, he arrived at a garda station in a brand new Mini Clubman to offer €800 off the €123,000 he defrauded Cork City Council.

The investigation into the fraud had continued since 2009 but McCaughley had repaid nothing until last week when he made a payment of €25,000 from a life assurance bond and a second payment of €800.

McCaughley, from 12 Kilmore Woods, Ballinspittle, Co Cork, was yesterday sentenced to four years in prison at Cork Circuit Criminal Court, with the final year suspended.

Detective Garda Michael Horgan was of the view that McCaughley retained a lavish lifestyle when he arrived last week at Anglesea Street Garda Station in the car.

McCaughley told the garda the car belonged to his mother, who was renting it, and he did not own a car.

Imposing sentence, Judge Patrick J Moran said garda information was that McCaughley and his wife attended at Keary’s garage and were involved in negotiations to purchase the car.

The judge also said rate-payers of the city would effectively end up having to pay the money defrauded by McCaughley at a time when shops, not least on Washington St by the courthouse, were closing down.

James O’Mahony, defending, said to the detective: “Cork City Council have expressed the view to you that they would prefer him to get a custodial sentence… the city council have no confidence in him paying the money back.”

Det Garda Horgan said: “I don’t have any belief that he will make serious effort to repay the money unless he is backed into a corner.”

McCaughley said in respect of Cork City Council: “I am completely apologetic. I am sorry. It is out of character to a huge extent. It is not something that will ever happen again. All I can say is I am really, really sorry. I will commit to a standing order and I will repay it in full.”

In a statement yesterday, the city council said McCaughley had conducted “a complex and sophisticated fraud... over a number of years and involv[ing] multiple bank accounts”.

“Cork City Council has secured a High Court judgment against Mr McCaughley in a civil case and also secured an instalment order against him at Bandon District Court on foot of the judgment,” it said.