Collapse hit firm, friends

MMI Stockbrokers is owed £1,147,531 by its former directors, employees and customers associated with the directors, the liquidator, Mr Tom Kavanagh, told the court.

Mr Oisin Fanning, the former managing director, and persons associated with him, owe £912,689. Mr Tim Murphy, and persons associated with him, owe £97,380.

Other debts owed by directors or persons associated with them are: Mr John Curran, £13,876; and Mr Paul Boucher, £15,751. Employee Mr Brian Horgan owes £10,000 and other employees owe £97,834.

Two of the MMI directors currently operate a currency trading business out of the stockbroking firm's former address on Baggot Street, Dublin.

Mr Boucher and Mr Curran are directors of Money Markets International Ltd, the currency trading associate company of Money Markets International Stockbrokers Ltd (MMI).

Mr Fanning was also associated with the Money Markets International. An account with MMI in the name of Mr Horgan, also a employee of the currency trading company, was credited with £44,956 in April 1998, from funds withdrawn from the MMI client account, according to the liquidator.

Mr Fanning could not be contacted. Nor could the other MMI directors or Mr Horgan.

In the event of the client funds being found to be short of what is needed to pay the clients, the MMI directors may become personally liable.

The MMI client books indicated clients are owed £2.4 million, but the funds held in the client accounts total only £1.18 million. However, the true deficit depends on a number of matters which are before the courts.

Yesterday's High Court proceedings arise out of funds totalling £1.9 million being taken out of an account in the name of Cater Allen, a company based in the Channel Islands, and being lodged to other accounts, some of which were in the name of Mr Fanning and Mr Curran.

The true beneficiaries of Cater Allen are not known. When interviewed by the liquidator, Mr Fanning initially refused to discuss Cater Allen but later said he was allowed to trade on the account without authority from his clients. He referred further queries to a Mr S. Nolan, who works for Cater Allen in Jersey. Mr Curran said queries should be addressed to Mr Fanning.

The total amount owed to MMI from debtors is just over £5 million. Many of the debts are disputed, and more than £1 million is owed from offshore corporate debtors. Many debtors are alleging the directors engaged in unauthorised transactions on their behalf.

Apart from clients owed money, other creditors are owed £1.6 million. They are: trade creditors (£160,031); Ulster Bank (£538,000); the Revenue Commissioners (£198,716); Prudential Bache creditors (£320,000); K&H Options (£321,000); and the Department of Enterprise, Trade and Employment (£94,000).