The Director of Public Prosecutions has decided not to run a third trial against a financial services manager accused of being part of an alleged conspiracy to defraud investors in Custom House Capital over a decade ago.
Two juries failed to reach a verdict in the case of Ciara Kelleher (53), the firm’s then-senior portfolio relationship manager. She was accused of one count of conspiring with others to defraud investors, clients, and customers of Custom House Capital Ltd. (CHC) by intentionally misleading them as to where or how their assets had been placed in the investment firm.
The offence was alleged to have happened within the State on dates between October 2008 and July 2011. Ms Kelleher, of Blackhorse Ave, Dublin 7, had denied the charge.
The first trial took place two years ago, and the second trial finished a month ago. The case was adjourned until Thursday allow the DPP time to decide whether to go ahead with a third trial.
When called in Dublin Circuit Criminal Court, the prosecutor told Judge Martin Nolan that a nolle prosequi could be entered, meaning the charge against Ms Kelleher is being dismissed.
“Despite today’s decision by the DPP, Ciara remains devastated that she has been subjected to over a decade of suspicion, allegations and the threat of prison,” the Kelleher family said in a statement after the dismissal. “Ciara has been plucked from obscurity, crushed by the might of the State, left in a wilderness with no job, no income and no prospects. We feel that many questions remain unanswered.”
It was the State’s case that CHC entered agreements to buy properties in mainland Europe at the time of financial crash. In 2008, CHC began to use client funds to meet these obligations, often without the knowledge or authorisation of clients.
It was the prosecution’s case that transactions on CHC’s systems were backed out of property before valuations were issued to clients. These valuations were misleading and did not show clients the true location of their funds.
It was the prosecution’s case that Ms Kelleher was aware and involved in a scheme to defraud investors in CHC. Ms Kelleher denied any wrongdoing.
CHC’s former CEO Harry Cassidy (69), John Whyte (55), former head of private clients, and Paul Lavery (49), former head of finance, previously pleaded guilty to conspiring with others to defraud investors in and clients and customers of Custom House Capital Ltd by intentionally misleading them as to where and/or how their assets had been placed contrary to common law.
John Mulholland (75) of The Foxes Colvert, Mount Juliet Estate, Thomastown, Co Kilkenny – a non-executive director of CHC – pleaded guilty to one count of neglectful discharge of the duty of a director in relation to the commission by the company of acts of dishonesty by inducing clients to entrust funds, refrain from removing funds with the intention of making a gain for itself and causing loss to another.
All of the offences occurred within the State between October 1, 2008, and July 15, 2011.
Cassidy, of Clon Brugh, Aitkens Village, Stepaside, Dublin; Whyte of Beechpark, Lucan, Dublin; Lavery of Rafeenan, Ballynod, Co Monaghan and Mulholland were all sentenced at Dublin Circuit Criminal Court almost two years ago.
Cassidy was handed a sentence of six years and ten months, Whyte – former head of private clients- received a sentence of four years and Lavery was handed a sentence of three years. Mulholland received a 12-month sentence.
