Lawyers for Limerick firm whose CEO was accused of spending its funds on girlfriends withdraw from case

The solicitors claimed when a settlement was signed on behalf of the company, it was not the one the lawyers had agreed but another version

Hansaworld's chief operations officer claims Karl Bohlin (pictured) had allegedly carried out 'extravagant personal spending' using company funds. Photo: Hansaworld

Solicitors who represented a company whose CEO allegedly spent the firm's money providing homes and jobs for his girlfriends, who had allegedly been screened through illicit websites, have withdrawn from the case, the High Court has heard.

It came after a proposed settlement of a dispute with one of the company's executives was allegedly not proceeded with and the company’s original lawyers decided to "come off record".

The case was brought by Jennifer O'Carroll, chief operations officer of Limerick-based software group, HansaWorld, who had sought orders against the company lifting her suspension as director and company secretary and to stop alleged interference in her role as COO.

As part of her proceedings, Ms O'Carroll had made claims about the manner in which the group's CEO and majority shareholder, Karl Bohlin, had been running the business and what she considered was his alleged "extravagant personal spending" using company funds.

She claimed that since last spring, Mr Bohlin had allegedly been primarily concerned with his love life and finding a girlfriend, which she claimed he allegedly described as his "highest priority". She claimed Mr Bohlin allegedly used the company human resources "to screen the girls from various illicit websites for suitability".

Over recent months, she said, he has “insisted on hiring these ladies even if they are not suitable candidates” to positions in the company and insisted on using the firm’s funds to lease houses for them, including one in China and another in Dubai.

The claims were denied.

Negotiations took place between lawyers for both sides and eventually a settlement of the matter was agreed which would see the end of the court proceedings.

However, when the settlement was signed on behalf of the company, it was not the one the lawyers had agreed but another version, it has been claimed. As a result, the company's lawyers said they would no longer be able to represent HansaWorld.

On Thursday, Mairéad McKenna SC, for the solicitors, said the relationship between her client and the company appeared to have broken down. There had been difficulties in obtaining instructions and other difficulties in relation to the discussions which took place between the parties, she said.

New solicitors had agreed to represent the firm, she said. Mr Justice Brian Cregan approved the application for the solicitors to come off record and noted a letter from the defendant that new solicitors would be coming on board and everything would be done to "regularise the situation and inform the court".

The case now goes back to the normal court list to get a hearing date.