A DUBLIN based company is suing investment intermediary Mr Paul Taaffe for monies which it gave him for pension policies, but which was never credited to them. It believes losses arising from the alleged fraud are now in the region of £141,000. It is also suing him for damages, fraud and theft, deceit and breach of contract.

Mr Taaffe, who is understood to have left the country and is believed to be in Spain, was a member of the Irish Brokers Association (IBA). It said he was expelled from the association in March, following a complaint involving around £10,000 of another client's money, and has subsequently ceased trading.

A solicitor, acting on behalf of the company, which asked not to be named, has told The Irish Times that the company paid Mr Taaffe, who ran Taaffe Assurance Associates, with an address in Stillorgan, Co Dublin, in excess of £500,000 over a 10 year period.

The monies were to be used to provide pensions for staff at his client's firm when they retired. However, last year the company began asking Mr Taaffe for details about its policies.

The details were not forthcoming and the matter was pursued on their behalf by Mr Michael Nugent, a solicitor based at Sandford Road, Ranelagh in Dublin.

When the matter came to light last November, it appeared that £85,000 had not been put into policies for the period 1993-1995. In December, the figure had fallen to £55,000 as Mr Taaffe had put monies into certain policies on behalf of the company.

In December Mr Taaffe met Mr Nugent and agreed to repay £30,000 in two £15,000 cheques. However, at that stage he said that the £30,000 was the total loss sustained by the company. Upon enquiries it was discovered at least a further £23,000 was unaccounted for during the period.

The company was afraid Mr Taaffe would leave the jurisdiction and obtained a High Court Order which restrained him from reducing his assets below £150,000.

The company always paid the cheques for the policies to Mr Taaffe who then said he would put them into the pension plans. The company has also questioned the methods Mr Taaffe used. Mr Nugent said last night that in some cases Mr Taaffe bought new policies instead of topping up existing ones, because he got a far higher commission.

The company was contacted by the IBA who were told that other complaints were being made against Mr Taaffe. The company was asked to attend a meeting on March 26th to hear the complaint. Following some consultations Mr Nugent's client was told the hearing could not go ahead. This was because Mr Taaffe had said it was sub judice because the company was suing him. Mr Nugent said three complaints against Mr Taaffe were listed for that day.

Mr Nugent says the IBA was furnished with details of the complaint, although the hearing did not proceed.

Last December the company got a court order whereby it was given power to sell Mr Taaffe's home in Dalkey, Co Dublin. However, the house - which Mr Taaffe said was 50 per cent owned by his wife Brenda - was sold by Mr Taaffe for £225,000.

The High Court had made an order that the proceeds of the sale had to be lodged in court, pending determination of the scale of Mr Nugent's client's claim.

Mr Taaffe has challenged this and his wife has said that she is entitled to half the money.

The company believes it has lost in the region £141,000. This figure includes compensation for the loss of value of the pension funds, whereby money was not put in. It believes the money misappropriated by him was around £100,00. Legal and accountancy costs are estimated to be £40,000-£50,000.

Mr Taaffe, listed among his assets a Volvo car and a share in a boat in Dun Laoghaire.

It is believed that Mr Taaffe told a neighbour at the end of August that he was leaving Ireland for Spain and would not be returning.