An insurance broker for Celtic Helicopters who raised an investment of £100,000 for the company said he had been instructed by the company's accountant, Mr Paul Carty, to lodge the money in an Ansbacher account in Zurich.
Mr Michael Murphy said the cheque, which was lodged to the account of Credit Suisse, had been contributed on behalf of a Monaco-based businessman, Mr David Gresty of DB Agencies, whom he had asked to invest in the helicopter business.
Mr Murphy's company had owed DB Agencies £116,624, and this was repaid in the form of a £100,000 investment in Celtic Helicopters and a cheque for £16,624.
The tribunal heard yesterday that Mr Murphy is chief executive of Mike Murphy Insurance Broker Ltd of Trinity Street, Dublin, and had acted as broker for Celtic Helicopters since 1989. In 1992 he was contacted by Mr John Barnacle, a co-director of Celtic Helicopters with Mr Ciaran Haughey, and was asked if he could find investors for the company.
He approached Mr Gresty and he agreed to make an investment in the company of £100,000. It was indicated to Mr Murphy that this sum would represent 8 per cent of the company.
Mr Murphy's firm had a trading account with DB Agencies, and in September /October 1992 a payment of £116,624.62 was made in two cheques to DB Agencies. One cheque for £100,000 was made payable to Credit Suisse (London) and the balance of £16,624 was paid to DB Agencies. Mr Murphy handed over that cheque to Mr Gresty in Paris on September 30th, 1992.
Mr Gresty had required that the shares be held in trust for him in Mr Murphy's name. Mr Murphy told the tribunal he did not receive a share certificate and was never informed that the shares had been issued.
Mr Murphy said he had no knowledge that the £100,000 had come from Carlisle Trust, and he never had dealings with that company or the late Mr Des Traynor.
The cheque for £100,000, written in September 1992 and signed by Mr Murphy, was lodged with Credit Suisse (London). A letter given to the tribunal by Mr Murphy showed that he had requested that the cheque be sent to an account of the Ansbacher Bank in Zurich belonging to Credit Suisse on November 4th, 1992.
Mr Murphy said that, apart from Mr Gresty, he had asked two people to invest in Celtic Helicopters, but they had not done so.
He said his company did marine insurance business with DB Agencies and a debt of £116,000 had accumulated from an "old account".
Counsel for the tribunal, Mr John Coughlan SC, said the original cheque for £100,000 indicated that the money had been paid from a "non-life insurance client account". He asked Mr Murphy if this indicated that the £100,000 was clients' money.
Mr Murphy said it would certainly indicate that it came from a client's account, but he could not confirm whether the money was commission or premium.
Mr Coughlan said whether it was premium or commission, it was all "referable" to the clients and not to Mike Murphy Insurance Broker. Mr Murphy agreed that was so. Mr Coughlan asked Mr Murphy who had requested that he send the money to an Ansbacher Bank account in Zurich.
"My recollection is that it was Paul Carty," replied Mr Murphy.
A letter sent by Mr Gresty to Mr Murphy on October 5th, 1992, acknowledged that he had received a cheque for £16,624.62 and this had reduced the amount outstanding on the old shipments account.
"I forward the cheque as agreed for the investment in Celtic Helicopters. I note that you will hold the shares for me in a nominee account for the moment and I will instruct you later when I decide further," wrote Mr Gresty.
Mr Coughlan asked Mr Murphy whether he had any comment to make on how he received an acknowledgement for that sum and his indebtedness was adjusted when the money had not yet gone to Credit Suisse.
Mr Murphy said the cheque was written in September and it was possible that he and Mr Gresty had a discussion about the cheque.