Court jails former councillor for fraud

A Former Limerick councillor has been jailed for six months for fraud following a lengthy investigation by the Criminal Assets Bureau.

Michael Kelly (aged 47) of Ballyneety, Co Limerick had been convicted last March on 26 charges of tax and social welfare fraud follow the probe into his financial affairs and his security company, Crestwin Ltd.

Earlier this week, the former poll-topping city councillor began an appeal of that conviction at Limerick Circuit Court.

The appeal hearing was expected to run for up to two weeks - but in a dramatic twist yesterday - Mr Kelly changed his plea to guilty on two sample charges.

The father-of-three pleaded admitted failing to remit VAT of IR£4,160 on a cash payment of IR£25,000 to his security company, Crestwin Ltd, in May 2001.

He also pleaded guilty to furnishing false or misleading P35 declarations regarding casual earnings of IR£35,780 when the correct amount was IR£99,071.55.

Judge John O'Hagan said that since the start of the appeal, Mr Kelly had tried to establish some kind of "conspiracy" against him involving the Criminal Assets Bureau and members of the gardaí.

Mr Kelly - who has 37 previous convictions - had been representing himself during the appeal after he recently fired his legal team.

Imposing sentence, Judge O'Hagan said there was a deliberate mechanism used to hide cash payments going through the books regarding VAT and that Mr Kelly had submitted incorrect tax returns.

"Despite an investigation by the Criminal Assests Bureau, Mr Kelly continued to make false returns and even a child would realise what he was doing was wrong," said Judge O'Hagan.

The judge added that Mr Kelly had 30 years experience of the security business and should have known his obligations as an employer.

Mr Kelly had been elected as a public representative and he was a person that the community looked up to, the court heard.

"People expect public representatives to behave in a law abiding way and that includes tax matters," added Judge O'Hagan.

Judge O'Hagan said he acccepted that Mr Kelly had lost his security business, had suffered health problems, and that the father of three was currently depending on social welfare.

Judge O'Hagan refused a request from Mr Kelly to defer the start of the six-month prison sentence until after the Christmas period.

Mr Kelly was a high-profile member of Limerick City Council for three years after topping the poll in the Southill ward in the 1999 local elections.

He also stood unsuccessfully as an independent candidate in Limerick East in last year's General Election.