Businessman Colm Wu was involved in a scheme to divert monies out of 10 companies he controlled to pay debts and obligations, it has been claimed in Commercial Court proceedings.
It is also claimed he had engaged in fraudulent and/or reckless trading and had transferred assets of the companies to related companies and in some cases to himself. It is further alleged he failed to keep proper books and records, breached his fiduciary duties and was guilty of misfeasance.
The claims are in proceedings by liquidators of his companies and are being opposed by Mr Wu. On Monday, his lawyer consented to an application by the liquidators to have the case against him and the 10 companies admitted to the fast-track Commercial Court list.
Myles Kirby and Padraic O’Malley, who are liquidators of three Wu-controlled companies, say that based on investigations to date Mr Wu left creditors of the trading companies, as well as Revenue and trade creditors, unpaid in many instances. Instead, it is claimed, money that was the property of the companies, was used to pay the liabilities of other companies in a manner that benefited Mr Wu.
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Mr Kirby, of Kirby Healy Chartered Accountants, is the official liquidator of Castor Ventures Ltd and joint voluntary liquidator with Padraic O’Malley, of JW Accountants, of the Clifton Court Hotel Ltd. Mr O’Malley is also voluntary liquidator of NCR Property Ltd. The companies appear to have traded while insolvent, it is claimed.
Mr Kirby says those three companies, along with ten others named in the liquidators’ proceedings, are all controlled by Guoqing Wu, otherwise known as Colm Wu, Guo Qing Wu, Colm Guoqing Wu and Wu Guoqing.
Mr Kirby, in an affidavit seeking admission of the case to the commercial list, said from their joint as well as separate investigations, the liquidators have uncovered “a series of transactions which appear to us to be entirely improper and to amount to frauds on the companies and/or their creditors”. There were approximately 1,100 intercompany money transfers between the companies for the period 2021 to 2023, he said.
It appeared the companies operated under the direction and control of Mr Wu who was the sole director of each of them. It also appeared the affairs of the companies were “deliberately intermingled” and that repeated efforts were made to transfer assets and cash from one entity to another with a view to evading creditors, he said.
The companies appeared to have traded while insolvent and accumulated significant liabilities, he said. There were a series of significant cash withdrawals for which no bona fide purpose has been identified, including some €50,000 from the Clifton Court accounts, he said.
There was also improper use of funds received from Revenue and/or improper loans to directors, he said.
Mr Kirby estimates the total value of creditors’ claims is some €2.2 million. The liquidators have obtained an interim order and are seeking a more long-term interlocutory order, pending a full hearing of the proceedings, restraining Mr Wu from reducing his or the companies’ assets below that sum.
They have also sought orders restraining him from removing his or the companies’ assets from the State.
They further seek orders that he provide the court with a statement about money transfers of any kind by the companies.
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