Quinns and receiver at odds over ‘huge’ sums

A receiver appointed over assets of members of the family of bankrupt businessman Sean Quinn has told the Commercial Court “huge” six-figure sums passed in and out of accounts held in the joint names of Ciara Quinn and some of her children during 2011 and 2012.

The Quinns argue those sums have “nothing whatever” to do with assets of their international property group or any assets that are the subject matter of legal proceedings between them and IBRC.

Kieran Wallace, the special liquidator of IBRC, said in an affidavit that an analysis of accounts disclosed by the Quinns in autumn 2012 showed they were “not maintained for the benefit of the children in question” and involved “extraordinary transactions” whereby vast amounts of money were being channelled in and out of the children’s accounts”.

In an affidavit, Aoife Quinn said the monies lodged to the accounts came from Cranaghan Property Management Ltd, Quinn Windfarm Ltd, and Snugborough, and IBRC “well knew” those companies had no connection to the legal action.

Andrew Fitzpatrick, for receiver Declan Taite, told the court yesterday an explanation was sought for the “huge” transactions from Ciara Quinn but one was only recently provided.

The receiver had sought an explanation as to why accounts jointly held with children were used for “such an enormous level” of transactions to national and international accounts.

Despite the court stating the Quinns should co-operate with Mr Taite and another receiver, Sharon Barrett, who were both appointed in 2011, the receivers considered the Quinns to be frustrating and impeding their investigations into a range of matters, counsel added.

Ross Aylward, for the Quinns, said the accounts referred to by Mr Fitzpatrick were not at issue in the proceedings in which the Quinns yesterday reached agreement with IBRC permitting variations on freezing orders on their accounts subject to some conditions.

Mr Aylward said a suggestion by IBRC that €6m passed in and out of the accounts was based on “double-counting” lodgements and withdrawals and the sums involved were “nowhere near” €6m.

The delay in providing an explanation was a result of “an innocent oversight” and arose in circumstances where the Quinns had to deal with much complex litigation, he said. The receiver had not indicated there was any urgency, he added.

The payments referred to include a €735,000 credit payment, dated May 2011, from the account of a windfarm company to an account held by Ciara Quinn and a daughter of Ms Quinn.

Another payment, dated January 2012, was a €320,000 debit transfer to an account in Dubai with the beneficiary name as Market Study Solar Energy. Other payments were substantial six-figure debit payments made to lawyers.