the news that the conviction of Cork-born financier Mr Finbarr Ross has been quashed was greeted with dismay both North and South of the Border yesterday. Ulster Unionist MP Mr Roy Beggs, who knows some of the now elderly investors who lost money through International Investment Ltd (IIL) back in the early 1980s, was shocked when told the news.

"I accept the judgment of the court but what justice has there been for the investors in Northern Ireland, the Republic and Great Britain, whose £7.5 million disappeared in thin air?"

The investors he knew in Northern Ireland will be "deeply perturbed" by the development, Mr Beggs said. "It is shameful that people could be defrauded of £7.5 million sterling - €11.3 million and no one has been found accountable."

A Dublin professional who did not want to be named, but who was involved with the IIL affair, also expressed dismay. He pointed out that many of the investors were of "very modest means" and most were from Northern Ireland.

Those who have reason to feel a strong dislike for Mr Ross might take comfort from the fact that he has spent two years in prison as a result of the charges brought by the RUC.

Much of that time was spent in jail in Muskogee, Oklahoma, in the US, where inmates are subjected to a harsh regime.

Mr Ross was arrested in March 1998 by the FBI in the isolated area of Oklahoma on foot of warrants for his extradition issued by the RUC.

The 41 charges outlined in the warrants alleged that in December 1983 Mr Ross had represented IIL as a company investing in property and oil and providing a high rate of return, when "in fact the monies were not invested as represented, but were used, among other purposes, to pay interest to previous investors, to fund the construction of a home for Mr Ross and his acquisition of paintings, and to make unsecured loans for the benefit of Mr Ross".

At the time of his arrest, Mr Ross was working as a minister for a religious community called the Light of Christ Community Church. He had been in the US since around the time of the collapse of IIL, a collapse which left debts exceeding £7 million sterling.

Central to the RUC warrants was the attendance of Mr Ross at a function in a hotel in Belfast in December 1983, where people were encouraged to invest with IIL. Some did so, but within months IIL was in the midst of a cash-flow crisis. When it went into liquidation later in 1984, Mr Ross was living in Houston, Texas.

He contested his extradition when arrested on the RUC warrants. When a court in Muskogee ruled that Mr Ross should be extradited, he appealed. While awaiting the appeal hearing he remained in custody. By May 1999, he had exhausted legal options in the US and was flown back to Belfast. He was brought before the courts, where he pleaded not guilty and was again held in custody while awaiting trial.

The matter was in fact tried twice. The jury in the first trial failed to reach agreement and a retrial was ordered. In February 2000, while awaiting the retrial, Mr Ross was released on bail and went to stay with his sister in Macroom, Co Cork.

The second hearing of the case was in September of last year and led to convictions on three of the 41 charges. Mr Ross was sentenced to 30 months' imprisonment. It was later decided his time in US prison would not be taken into account. During the trial, argument was made by Mr Ross's lawyers that IIL was not insolvent at the time of the December 1983 meeting in Belfast.

His view was that the firm's assets were of significant value, and that after IIL went into liquidation insufficient value was secured for these assets by those then in charge.

Evidence was heard concerning how the assets were dealt with after the collapse of IIL, with Mr Arthur Harvey QC, defending, saying more than 100 sites valued at £5,000 each in Balbriggan, Co Dublin, were sold for £1,000 each.

He said a property on Aungier Street, Dublin, worth £400,000, was sold to former Irish Press solicitor, Mr Elio Malocco, for £60,000. In all only £900,000 was raised from the assets, with two thirds of this going on fees to Stokes Kennedy Crowley and one of its accountants, Mr Declan Collins. Mr James Galliano, a Gibraltar-based accountant who acted as liquidator to IIL, had appointed Mr Collins as his Irish agent. IIL was registered in Gibraltar for tax reasons.

Mr Galliano had been appointed liquidator after another Gibraltar-based accountant, Mr Timothy Revill, was removed. Mr Colm Allen SC, who was acting on behalf of IIL creditors, was involved in removing Mr Revill from his post.

Mr Allen chaired a committee of supervisors set up by the Gibraltar authorities to oversee the liquidation and suggested to Mr Galliano that Mr Collins act as the new liquidator's agent.

Mr Collins did not travel to Belfast to give evidence.

This and the absence of supporting documentary evidence weakened argument by the prosecution that the assets held by IIL, when it went into liquidation, were heavily indebted and that there were problems with the legal title to many of them.

The collapse of IIL created bitterness and controversy, much of which remains unabated. Mr Ross has expressed remorse and seems intent on concentrating on spiritual matters in the future.

In an interview with The Irish Times in March 2000, he said of his religious beliefs: "In 1992, I had a mystical experience with Mother Mary resulting in that she showed me I had a healing technique for healing emotional illnesses that people have . . . It's like I can see them clairvoyantly."

Last night he was thought to be staying with family in the Republic.