The High Court yesterday rejected an application by three members of the Felloni family, all serving sentences for drug trafficking offences, to release some of the monies of the three which have been frozen by a court order.
The Fellonis are seeking the release of the monies to fund the legal costs incurred by their defence in relation to an action by the State to have their assets confiscated.
Anthony Felloni, of Lower Dominick Street, Dublin, is currently serving a 20-year sentence, having pleaded guilty to four drugs offences.
His son Luigi Felloni, who also pleaded guilty to three drugs trafficking offences, is serving a term of six years; his daughter Regina Felloni is serving almost seven years for possession of diamorphine.
Yesterday Mr Garnet Orange, for the Fellonis, asked the High Court to vary an order made by Mr Justice Carney on April 4th, 1996, freezing the assets of all three Fellonis.
He said the action being taken by the Fellonis was the first of its kind that was being contested.
Last July, the Department of Justice had written that payment of counsel's fees did not arise under the 1962 Criminal Justice Legal Aid Act, counsel said. The court was told the defence has been granted a criminal legal aid certificate. In an affidavit, Sgt John O'Driscoll, of Store Street, Dublin, said that in addition to the four Irish bank accounts held by the defendants and known to the Garda, he had also uncovered six other accounts, five in Belfast and one in Liverpool.
It was possible that the Fellonis knew of other accounts within and outside the State which were at present unknown to him.
Sgt O'Driscoll said that a man who did not wish to be identified had come to Swords Garda station and handed in documentation which showed six bank drafts worth £19,397 sterling in the name of Regina Felloni.
Between them, Anthony and Regina Felloni held monies worth £115,513 in the UK jurisdiction, he said.
He said each of the defendants had extensive benefits from their drug trafficking activities. He said monies in financial institutions identified by the Garda, combined with monies seized and the value of a house in Mellowes Road, Finglas, Dublin, owned by Ms Felloni, exceeded £360,000.
In another affidavit, Mr Jim Orange, solicitor for the Fellonis, said there was no attempt to mislead the court.
The defendants had in their sworn affidavits referred to the order of Mr Justice Carney restraining all their "realisable property".
The solicitor said the Fellonis had informed him that their assets arose from a variety of sources ranging from property to savings to the proceeds of personal injuries claims.
In a third affidavit read to the court, Anthony Felloni said it was incorrect to allege that all of his assets were the proceeds of drug trafficking.
He said he had monies in accounts coming from a variety of sources and going back many years.
Mr Justice Shanley refused the request to release part of the frozen monies. He said the order granting free legal aid had not been set aside.
Last July, the issue arose as to whether the confiscation of assets was or was not a criminal proceeding, the judge said.
Lawyers for the Fellonis realised that if it was judged to be civil proceedings, then the legal aid certificate would be worthless.
Alarmed at such consequences, they wrote to the Department of Justice which replied that, as the three defendants had not been charged with any offence, the question of legal aid did not arise and no application for civil legal aid had been made.
He said the Fellonis were anxious to retain the solicitor and counsel who had represented them in earlier criminal proceedings and the present application was to allow them have access to funds for that purpose.
A section of the 1994 Criminal Justice Act clearly envisaged such a step, he said.
But none of the five accounts in Belfast or the sixth in Liverpool had been referred to by the defendants when the application was originally made, the judge continued.
These monies were discovered by Sgt O'Driscoll and the defendants' explanation had been to say they believed they were in fact covered by the freezing order.
Mr Justice Shanley said there was a valid legal aid order in existence which had not been appealed or quashed.
It seemed to him the criminal proceedings in the case did not conclude until the issue of confiscation had been determined.
In that instance, the legal aid certificate was perfectly appropriate and would be extremely difficult to impugn.
Even if he was incorrect in that, the Fellonis could still apply for civil legal aid and still have the barrister of their choice. There were no grounds for believing they would be prejudiced if their original solicitor did not continue to act on their behalf.
Mr Justice Shanley said a full disclosure by the defendants should have revealed the six accounts located by the Garda.
He found it hard to believe the Fellonis believed these accounts had been caught by the freezing order. He was not saying whether the Fellonis were telling the truth on this, although he found their explanation hard to believe.