Two suspected members of the Continuity IRA attempted to extort money from a businessman involved in a lap-dancing club, the Special Criminal Court has heard.
One of the defendants is an Army corporal on pre-discharge leave.
In a bail hearing yesterday it was alleged that Dubliners Mr Martin Kelly (46) of Westpark, Artane, and Mr William Clare (35) of Adare Park, Coolock, "demanded money with menaces" from businessman Mr David Mooney.
Opposing bail, Det Supt Patrick Hogan said the accused were arrested as part of a Garda investigation into the collection of funds by a dissident republican organisation, the Continuity IRA.
Supt Hogan told the court that on July 27th last, gardaí received a complaint from Mr Mooney, the manager of a lap-dancing club, who was trying to establish his own business in the Temple Bar area of Dublin.
Det Supt Hogan said Mr Mooney received phone threats warning him "to stay away from certain persons or he would have his legs broken". He was also threatened that he would have "a hammer stuck in his head" and was in fear of his life.
Mr Mooney recognised the voice as that of Mr Martin Kelly, the superintendent said.
When gardaí searched Mr William Clare's house following his arrest on July 29th last, they found a 9mm firearm capable of firing CS gas and flares, a bullet-proof vest and combat-type clothing, the court heard.
The two are charged with membership of an illegal organisation known as the IRA, otherwise known as Óglaigh na hÉireann, otherwise the Irish Republican Army, on July 29th, 2002.
Det Sgt Rory Corcoran, gave evidence of having stopped the two accused in a car in Dublin's Ilac Centre on July 9th last. He said he took €17,994 from a bag in the car.
In evidence, Mr Martin Kelly said he worked in the security industry providing doormen for clubs and pubs around the Dublin area. Question by Ms Mary Ellen Ring SC for the State, he agreed that he had €35,000 in savings and that he had an apartment in Spain.
He said he financed the Spanish property through compensation from an Army deafness claim. He told the court he had spent 26 years in the Army and went on pre-discharge leave last May.
Mr Clare claimed in evidence that the firearm found in his house was a toy gun that belonged to his girlfriend's son.
He got the bullet-proof vest for protection after the gardaí warned him that there were death threats against him, he said.
Both accused denied they were involved in an illegal organisation or extortion.
They told the court they were not in the paramilitary wing of Portlaoise Prison.
Objecting to bail, Det Supt Hogan said he feared the accused would try to intimidate witnesses and would not turn up for trial.
Det Supt Hogan told the court that further charges may be brought against the accused.
Mr Justice Richard Johnson, presiding, refused an application by Mr Kelly for legal aid.
The court granted bail to Mr Kelly on an independent surety of €25,000 plus a personal surety of €1,000, and to Mr Clare on an independent surety of €10,000 and his own surety of €1,000.
He ordered the accused not to communicate in any way with Mr Mooney and three other named persons, to surrender their passports and to sign daily at Coolock Garda station.
The two were remanded to appear before the Special Criminal Court on October 8th.