MARK Synnott (Life & Pensions) Brokers had been insolvent for the best part of 10 years before it finally collapsed in 1992 with debts of Pounds 2.3 million. Mr Mark A. Synnott had hoped to trade it out of trouble, he told the courts.

By operating a relatively simple system, Mr Synnott managed to conceal what was really going on at the long established family business. A practice, which he referred to in court as "bonding in arrears", effectively kept the firm in business since the early 1980s, long after it should have been wound up.

When a client gave him money to invest, the funds were immediately put into a bank account. When an investor wanted the money back, or was due some sort of a dividend, he would simply take a sum out of the bank account and pass it on to them. The policy, which has also been described as "robbing Peter to pay Paul" meant that investors were largely unaware of any deception.

The confident, persuasive broker claimed to have discovered a brilliant strategy that could yield high returns for investors.

Displaying an apparent in depth knowledge of the workings of the financial markets, Mr Synnott drew a substantial client base to the firm. He said that, in most cases, clients could expect yields of more than 20 per cent a year on their funds.

Established by his father, Mr Mark P. Synnott, in the 1950s for life assurance and pension schemes, Mr Synnott led the firm's move into investments on behalf of its clients. But, by the time liquidator, Mr Des Guilfoyle, of accountants Coopers & Lybrand was appointed in 1991, it became apparent that no special investment portfolio existed.

Auditors' reports, which only came to light after the firm had collapsed, showed that for all the years up to 1986, the firm had incurred losses of Pounds 42,000 and had a deficiency of net assets of Pounds 255,828, rendering it technically insolvent for up to 10 years.

A comparatively speedy liquidation of the company is expected to bring little satisfaction for the 109 investors, many of whom had given their life savings to Mr Synnott to invest.

One final legal action still has to be decided before the liquidator can determine whether he can return any funds to investors. By the end of the year, the best investors can hope for, it seems, is to be offered not much more than a penny in the pound on their initial investment.