Dunne ordered to stop hiding behind Irish law

Sean Dunne has been told by a US judge to stop using Irish in-camera law and answer questions about his financial transactions with his wife Gayle.

Mr Dunne refused to answer questions at his last creditor’s meeting in July, leading bankruptcy trustee Richard Coan to abandon proceedings and ask that he be held in contempt.

Judge Alan Shiff yesterday deferred the contempt action but ordered Mr Dunne to hand over documents and answer all questions in future hearings.

Judge Shiff said Mr Dunne had not answered questions in June because of claimed Irish in-camera rules and had done the same at the July meeting.

Mr Dunne filed for bankruptcy in Connecticut, where he lives, on March 29 and boasted he could be debt free within months because of the US’s less stringent regulations. However, he was declared bankrupt by the High Court in Dublin regardless, with his biggest creditors, Nama and the Ulster Bank, objecting to his attempted voluntary discharge in the US.

Dunne’s debts could run as high as $1bn (€730m), and among files he provided to US authorities, he listed two anonymous individuals he said he owed €33m and €2.3m.

When asked if the larger amount related to second wife Gayle, he constantly refused to answer.