Insolvent ‘golden visa’ company transferred €66m to related firms

The director of an insolvent cash-for-visa business listed a golf clubhouse as his address on company documents and has not yet furnished the firm’s books and records to its liquidator despite being directed to do so by a judge.

More than €66 million has been transferred out of the company over its lifetime to other connected entities, including in excess of €1 million to Chinese businessman Kai Dai himself, the court heard on Monday before it confirmed the appointment of insolvency practitioner Declan DeLacy as liquidator to Huawen.

Both Huawen and another entity, Nuremore Hotel Management — the entity behind the hotel and country club of the same name in Monaghan, which failed to reopen after closing before Christmas for renovation leaving staff without wages for a number of months — are controlled by Mr Kai, the court heard.

Through Huawen, Mr Kai helped foreign citizens to obtain Irish visas through Ireland’s Immigration Investor Programme before it was terminated by the Government earlier this month.

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Mr Kai also owned and operated the Nuremore Hotel and Country Club in Co Monaghan.

The High Court heard that Huawen’s only remaining asset is the issued share capital of the hotel, which it holds through Nuremore Hotel Management, which is the subject of a separate winding-up petition by a creditor.

Mr DeLacy’s provisional report on Huawen’s affairs indicated a total of nearly €85.7 million had been paid into the firm’s bank account over its lifetime and that the same amount had been paid out by August 2022. The figure included some €66 million transferred out of the company to businesses including close to €1.8 million to Mr Kai himself.

A total of more than €26 million was paid to companies connected to Mr Kai in 2017 and 2018 in respect of “professional consultancy fees”, said Mr De Lacy.

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The petition to wind up Huawen was presented on behalf of Yan Wang, a Chinese citizen who, along with her husband, loaned €1 million to Huawen so that they could avail of Ireland’s Immigration Investor Programme.

Barrister Brian Conroy told the court that the company was to pay off the debt over three years at an interest rate of 3 per cent annually.

The loan note was due for repayment in July 2020 but, despite numerous requests for repayment, it has not been paid, said Ms Yan in her affidavit. Mr Conroy said that the total amount owing to Ms Yan is now more than €1.17 million.

Mr DeLacy’s report also indicated that five other creditors have issued proceedings against Huawen over debts, resulting in judgments against the company of more than €300,000 so far.

Confirming Mr De Lacy’s appointment, Ms Justice Miriam O’Regan said there were “very concerning issues” surrounding the company and urged Mr Kai to furnish the liquidator with Huawen’s books and records.

Separately, Nuremore Hotel Management — subject of a separate winding-up petition by a former chef at the hotel who had not been paid for several months — has now paid its debt to the petitioner, the court heard.

However, the Revenue Commissioners — to which the hotel owes in excess of €680,000 — will apply to the court to replace the former employer as petitioner in the matter, which was adjourned for three weeks.