US financier denies he tried to hide involvement in company contracted to operate Ipas centre 

Jeffrey Leo made the denial at the High Court during cross-examination relating to his handling of a $60m investment he managed for US-based investors Mary and James Wenning

The Wennings allege that Mr Leo, a former Morgan Stanley stockbroker, misappropriated their investment. This is denied. Picture: iStock

A US financier has denied a suggestion that he attempted to conceal his involvement in a company contracted to operate an International Protection Accommodation Service (Ipas) centre at Dundrum House Hotel in Co Tipperary.

Jeffrey Leo, of Tullamaine Castle in Tipperary, made the denial at the High Court during a cross-examination relating to his handling of a $60m (€52m) investment he managed for Ohio, US-based investors Mary and James Wenning.

The Wennings allege that Mr Leo, a former Morgan Stanley stockbroker, misappropriated their investment. This is denied.

Mr Leo appeared before Mr Justice Michael Quinn in proceedings brought against him by Kieran Wallace, liquidator of Wenning Holdings Ltd. 

Wenning Holdings is one of a nexus of Irish companies linked to Mr Leo and related to the Wenning investment.

Under questioning by senior counsel Kelley Smith, Mr Leo agreed that Brogan Capital Ventures — the owner of Dundrum House Hotel — entered into a lease agreement in January with Utmasta Ltd for the use of property.

Brogan Capital Venture is a subsidiary of Steelworks Investments Ltd, a firm now in liquidation. 

The court previously heard that Steelworks — which was controlled by Mr Leo — was used as an investment vehicle for the Wennings’ $60m.

Utmasta operates an Ipas centre for housing people seeking asylum at the Co Tipperary site.

Mr Leo agreed that Utmasta has a single shareholder, a Spanish woman named Ana Maria Fernadez Sanchez. 

Mr Leo said that he did not know Ms Sanchez. “I have no relationship with her,” he said.

Mr Leo claimed the contract between Brogan Capital Venture and Utmasta was supposed to include a profit share agreement, in which Brogan Capital would receive 50% of the proceeds of Utmasta’s Ipas contract with the State.

Declaration of trust

Ms Smith subsequently put to Mr Leo that a declaration of trust, signed in January, showed he and his wife Winifred Anna O’Sullivan, also of Tullamaine Castle in Tipperary, actually hold a 50% ownership stake in Utmasta.

A declaration of trust is an arrangement whereby a person holds company shares for the benefit of another person.

Ms Smith put to Mr Leo that it was not true that Utmasta was not his company, contrary to what he asserted throughout the proceedings. 

In fact, Mr Leo and his wife were the beneficial owners of half the company, she put to him.

In response, Mr Leo said that any income they received flowed through Brogan Capital Ventures. 

He said that neither he nor his wife received any funds arising from the Utmasta contract.

Ms Smith further put it to Mr Leo that he sought to transfer shares in Utmasta to his father-in-law.

“What you were doing was concealing your ownership in an Ipas centre which had an extremely lucrative contract,” Ms Smith said. 

She added that he sought to conceal his ownership from Mr Wallace, the Wennings and anyone else. Mr Leo denied this.

Mr Leo further denied that “significant portions” of his evidence given during the examination were untrue.