Gallagher said 'rough people' took paintings, court hears

A few days after selling three paintings he allegedly stole from the Fitzwilliam Hotel, celebrity chef Conrad Gallagher told its general manager they had been taken from him by 'rough people', Dublin Circuit Criminal Court heard today.

The jury at Dublin Circuit Criminal Court heard on the second day of Gallagher's trial that he sold the three Felim Egan abstract paintings in issue for an advance of Ir£9,000 to a fine art auctioneer on November 21, 2000 but made the "rough people" robbery claim on November 24, 2000.

John Kavanagh told prosecuting counsel, Melanie Greally BL, he noticed in late October 2000 that the paintings were missing from the wall of Gallagher's restaurant in the hotel.

He said he asked Gallagher where they were and the accused replied that he had taken them down because one of them had come lose and needed more secure fittings.

He showed the paintings being held in the chef's area of the restaurant at the time.

Kavanagh said he went on holiday shortly afterwards and noticed that the paintings were still not on the wall.

He asked Gallagher on Wednesday November 24, 2000 where they were and he replied that they would be re-hung on the wall by 5pm that Friday.

Gallagher rang him on Friday and told him there had been a slight delay in the plans and that the paintings would be on the wall on Saturday.

When Kavanagh checked on Saturday, they were still missing.

Kavanagh said he then called Mr Gallagher who told him he was unable to speak to him at the time and would call back.

Some time later Gallagher burst into his office and said: "They are gone!" Kavanagh said he asked Gallagher what was gone and he replied that "rough people" to whom he owed money had taken the paintings from him.

He also told Kavanagh that he would not be able to get the paintings back and that these were "not very pleasant" people who were threatening him.

"He told me there was nothing he could do to get them back.", Kavanagh said.

Gallagher, aged 32, formerly of Killiney Hill Road, Killiney, and with an address at Pembroke Road, Ballsbridge, denies stealing three abstract Felim Egan paintings from the Fitzwilliam Hotel on dates unknown between November 2 and November 22, 2000.

He has also pleaded not guilty to obtaining money by false pretences on November 21, 2000 at The Lodge, Killiney Hill Road with intent to defraud through getting Ir£9,000 from Bryan Greene by falsely pretending that three Felim Egan abstract paintings were his property to sell.

Earlier, Greene said he visited Gallagher's home on November 21, 2000 where he had valued several items that Gallagher wanted to sell.

Gallagher, whom he had sold paintings for before, but had not met in person, rang him and asked him if he could buy some paintings and items off him as he was in dire financial straits and needed money.

He agreed to visit Gallagher's home in Killiney on the same day to see if there were any items of value that he would be interested in buying.

He identified several.

The items included, among other things, the three paintings that Gallagher is accused of stealing.

Greene told Greally he agreed to give Gallagher an advance of Ir£9,000 for the items.

He said he asked Mr Gallagher if he owned all the items, including the paintings and he said he did.

He agreed to the Ir£9,000 advance and it was to be paid out to his company account at Bank of Ireland.

He was to return the money to the auctioneers with interest, amounting to Ir10,000 in total within one week.

Failure to do so would mean that his items would go on public auction on December 4, 2000 and if the sale realised more than Ir£10,000, he would be given the balance.

Mr Greene said Mr Gallagher had not returned the money by December 4, 2000 and the paintings were sold at public auction on that day.

He agreed in cross examination by Mr Richard N Kean SC, defending, that had Mr Gallagher owned the paintings, his conduct with the auctioneers can be described as 'impeccable'.

He said he had been shocked when gardaí told him three days after they were sold that the paintings, in fact, did not belong to Mr Gallagher as he had claimed.

Tom Mannix, financial director of Ampleforth Ltd, owners of the hotel, said that Mr Gallagher began operating in Fitzwilliam in June 1998 but by February-March 1999 he was obviously in financial difficulties.

He was in arrears on his licence agreement with the company and had been often late in making payments.

Mannix told Greally that Ampleforth bought furniture Gallagher had put into one of the restaurants from him at the full price he paid, Ir£22,000, and allowed him continue using it.

Gallagher asked him in July 1999 if Ampleforth would buy number of valuable paintings he had and it was agreed to purchase 19 paintings on a list produced for £20,000.

Mannix said the three Felim Egan paintings were included on the list and he took Gallagher through it to make sure he was aware of what he was selling to Ampleforth.

He was happy with the agreement and signed it.

Mannix told Kean, in cross-examination, that Ampleforth had loaned £50,000 to Gallagher as well as making a £50,000 overdraft facility available for him.

A shelf-company called Eaton Star Ltd was purchased to manage the restaurants and Gallagher owned 75% of this and Ampleforth had 25%.

Mannix said he became suspicious about a £9,000 lodgement to an Eaton Star account on November 22, 2000 and contacted Holland about it.

He knew the Revenue Commissioners had levied an attachment order for about £20,000 against Eaton Star Ltd.

It was his first experience of such an instrument and he agreed with Kean he was unaware until he investigated the lodgement that the Revenue Commissioners insisted on a special account

being opened into which all monies should be lodged to clear the attachment.

Mannix told Kean that he understood Ampleforth was buying 19 paintings on the list which had them numbered 1-3, and 1-16.

The paintings at 1-3 were those in dispute. He told gardaí in his first statement that Ampleforth bought 16 paintings but clarified this to 19 in a second statement which Kean noted was made

in October 2002, just two weeks before the trial was initially due to start.

Mannix agreed with Kean that Gallagher was in such a hurry to get the £20,000 cheque to lodge it for staff payments to be made, that he began to sign the agreement in the wrong place.

He said he advised Gallagher at that time to get a pair of spectacles.

Pressed by Kean who suggested that Ampleforth pressurised Gallagher into signing an agreement he had not had time to study, Mannix replied that counsel was making the accused out to be "an imbecile who could not read four simple paragraphs".

"Conrad at that time ran a group of restaurants that employed 250 people, had signed television and book contracts and ran a pub in Donegal with his brother", Mannix said.

Mannix agreed with Kean that the three disputed paintings were hung at Christopher's Brasserie restaurant at the Fitzwilliam Hotel while the agreement referred to paintings at its Peacock Alley restaurant but said they used "the generic term Peacock Alley" to mean they were dealing

with Conrad Gallagher.

The hearing continues before Judge Yvonne Murphy.