Hundreds of clients of the Cork stockbroking firm, W & R Morrogh, have been contacting the regulatory authorities and the Garda with concerns about their investments.

The Central Bank moved to suspend trading at the firm on Thursday and has begun working with the Garda Bureau of Fraud Investigation to determine which clients may have been affected and the true extent of any losses, initially estimated at up to £1 million (#1.27 million).

In a statement on Thursday, the firm's senior partner, Mr Alexander Morrogh, said the "apparent irregularities" involved the firm's junior partner, Mr Stephen Pearson. Mr Pearson has not been available for comment and a family member said they had been told by the Central Bank not to comment.

Speaking to The Irish Times yesterday, Det Sgt Eddie Fogarty said the investigation was at a very early stage and the Garda had been taking details from clients who had been contacting the Cork unit.

The firm's trading activities have been suspended until June but, depending on the progress made by the various investigators, this may be lifted ahead of that date or extended.

The investigations will focus initially on the firm's records to determine how clients may have been affected. Clients' funds and shares held in the firm's nominee account on behalf of clients have been frozen by the Central Bank.

The irregularities are believed to have occurred in recent months, although records going back over a longer period will be examined. Depending on the length of time over which any irregularities occurred and the type of activity involved, the potential losses could be over £1 million, according to industry sources.

The Central Bank and the Garda will also examine share dealings and other transactions by the firm's partners and their immediate family. Mr Morrogh and Mr Pearson are personally liable for any losses to clients.

The irregularities are believed to have been uncovered by the firm and the Central Bank was subsequently informed. Staff at W & R Morrogh are co-operating with the investigations.

All stockbrokers are required to make weekly returns on clients' positions and transactions to the Central Bank. Returns in recent weeks and months are understood to have appeared normal. The Central Bank does not insist that these returns should be audited and relies on the firm to make accurate reports. W & R Morrogh is the oldest stockbroking firm in Ireland and is understood to have a substantial client base in Cork as well as in the wider Munster region. It offered very competitive dealing services to clients and is said to have enjoyed very strong loyalty from wealthy individuals in Cork.

The firm was described as operating an "old world" type stockbroking service. Its business affairs tended to be very precise and it would have operated in a "gentlemanly" fashion, according to clients.

Clients range from relatively small investors to professionals and local business people. The firm mainly executed share trades for clients but also provided investment portfolio management on a small scale.

The Central Bank is compiling a statement of the position of client funds but it will be some time before this is ready. The Garda Bureau of Fraud Investigation is expected to begin its investigations when the Central Bank makes an initial report of what has been uncovered. A number of W & R Morrogh's clients who contacted The Irish Times were concerned about their investments and the fact that they could not trade any shares held in the firm's nominee account. Market sources suggest it could be some considerable time before a true picture of what happened emerges.