A daughter and two sons-in-law of bankrupt businessman Seán Quinn were paid sums totalling about €881,000 over a year under employment contracts with Russian companies in the family’s international property group, the Commercial Court has heard.
Colette Quinn was paid some €340,000 while her brothers-in-law, Stephen Kelly and Niall McPartland, were paid about €260,000 and €281,000 respectively. The money was paid into accounts held by the three with Ocean Bank in Moscow and was withdrawn from ATMs here and via Visa Cards.
Ms Quinn said she had few documents or receipts indicating what happened to some €327,000 of the €340,000 paid to her over a year between 2011 and 2012. Some of the money went for household expenses such as groceries and petrol and some for legal fees. She was not in the habit of keeping household receipts and there was €12,500 left in the account last August, she said.
She withdrew some €16,000 in 20 transactions mainly from ATMs in Belturbet and Cavan town over two hours on June 14th last year, the court heard.
She said she was concerned about being asked about the purpose of such withdrawals both for legal reasons, as Irish Bank Resolution Corporation (formerly Anglo Irish Bank) had alleged she was in contempt of court orders restraining stripping of assets from the IPG, and for personal security reasons.
Mr Kelly said he was paid some €260,000 from two Russian companies between May 2011 and June 2012 and rejected suggestions it was “extraordinary and unbelievable” for him to say he had no receipts.
Mr McPartland, a solicitor, said he received a salary of some €281,000 from three Russian companies. Ocean Bank had a policy of not issuing bank statements and, while that was “bizarre”, there was “nothing sinister” about it.
While he did have receipts relating to how he spent those monies, he did not believe he was required under the terms of court orders to disclose them to IBRC. The orders required him to disclose documents concerning his assets, plus any steps taken by him to put IPG assets beyond the bank’s reach and he had done that.
Shane Murphy SC, for IBRC, told Mr McPartland the documents should be disclosed but Mr McPartland disputed that.
He said he had not kept copies of his employment contracts with the Russian companies or of earlier employment contracts with Quinn Insurance. His employment with the Russian companies was done through Seán Quinn jnr, Stephen Kelly and Peter Darragh Quinn, whom he trusted.
All three witnesses said they were awaiting bank statements from Ocean Bank concerning their accounts.
They were being cross-examined by Mr Murphy in a preliminary application before Mr Justice Peter Kelly to the full action in which the bank alleges various Quinn family members were involved in a scheme to place IPG assets beyond its reach. The full case has been adjourned pending criminal trials of former Anglo chairman Seán FitzPatrick and two former senior executives of the bank.
The cross-examination of the Quinns arises from IBRC’s claims that they have not made full disclosure of their assets, accounts and involvement with IPG companies.
