Closure of stockbroker is decade's fourth

The closure of W&R Morrogh brings to four the number of stockbroking firms that have collapsed or ceased trading in the past 10 years.

In September 1998 (Money Markets International) MMI Stockbrokers, a Dublin firm specialising in investments for private clients, was ordered to cease trading by the Central Bank.

The firm had been heavily involved in trading in Dana Petroleum shares and when the price collapsed from 24p sterling to 8p sterling it found itself in severe difficulties. In February 1999 a provisional liquidator was appointed by the High Court, which was told the firm had liabilities of about £14 million.

The liquidator, Mr Tom Kavanagh, subsequently initiated fraud proceedings against the firm's directors, who strongly contested the charges. The case collapsed before it came to trial.

In December 1992 a stockbroker with the small Dublin firm, O'Brien Stokes was suspended following the discovery of financial irregularities. Mr David H McKenna, was managing finance and administration partner of the firm. Earlier this year he was given a four-year suspended sentence in relation to the affair.

A sum of more than £300,000 is believed to have been involved and the firm's partners had to invest new capital into the business following the discovery. In 1991 a Cork stockbroking firm, Beale Sheffield, was closed by the Stock Exchange. The firm had a deficiency of £718,220, over £500,000 of which was attributed to "losses resulting from the alleged irregularities in the affairs of the company".