W&R Morrogh, Ireland's oldest stockbroker, was forced to cease trading in April 2001 when financial irregularities were uncovered. The move froze investors' funds and shares held by the Cork broker.

Almost immediately, it emerged that junior partner Mr Stephen Pearson had run up massive losses trading futures on his own account and had used investors' funds to meet debts.

Within three days, the Central Bank successfully sought the appointment of PricewaterhouseCoopers' Mr Tom Grace as receiver. Efforts to find a buyer for the firm failed and it was wound up in late May 2001.

Initial estimates of losses of up to £1 million were soon shown to be unduly optimistic. By the time the firm was wound up, the losses amounted to £7.9 million, a figure only partially offset by £2.4 million injected by the partners - Mr Pearson, who owned 40 per cent of the firm, and senior partner Mr Alec Morrogh.

The firm's 9,300 clients were shocked to learn that Mr Pearson had been embezzling client funds. His father covered those losses and neither the Irish Stock Exchange nor the Central Bank was informed.

Since then, customers have been waiting for the receiver to assess the scale of their losses so that the Investor Compensation Company Ltd (ICCL) could begin to issue payments.

Share certificates traceable to customers have been returned and ICCL payments have been made in respect of cash missing at the company. That leaves those whose shares were held in electronic nominee accounts waiting.

ICCL payouts are limited to €20,000, leaving larger investors exposed to sizeable losses.

The High Court recently determined the receiver was entitled to use client funds to pay the costs of receivership.

A final report from the receiver is awaited.