Part of the proceeds of an international business "scam" ended up in three Irish banks, it was claimed by a senior counsel at Cork Criminal Circuit Court yesterday.
Accounts were opened at AIB branches in Cobh, Co Cork, and Cahir, Co Tipperary, and the TSB in Midleton, Co Cork, where money from mainland Europe was deposited in an attempt to "launder" it, said Ms Maureen Clark SC, for the State, when she opened the case against two foreign nationals.
"There were two scams, carried out by other people. The State claims that part of the money from the first one ended up in Ireland and the balance in Austria. The money from the second scam, involving 800,000 French francs - about £100,000 - ended up in an Irish account," said Ms Clark.
Before the court are Ms Maria Bernadetta Jehle, who is Swiss, and Mr Ernst Gunther Hollman, a German, both of The Priory, Ballymore, Cobh, who have pleaded not guilty to charges under the Criminal Justice Act 1994. It is the first case in the State under money-laundering legislation.
Ms Jehle is charged with handling DM500,000 (about £200,000) knowing it to be the proceeds from other persons' criminal activities between May 31st, 1996, and May 17th, 1997, in Co Tipperary; and handling £80,000 knowing it to be the proceeds of other persons' criminal activities on May 16th, 1997, at Main Street, Midleton.
Mr Hollman is charged with handling DM250,000 between July 1996 and October 1997, and handling £25,000 on similar dates, knowing the money to be the proceeds of other persons' criminal activities.
A German businessman, Mr Klaus Jurgen Wiese, told of his plan to borrow DM40 million to build a hotel. He already owned one successful hotel. He and his financial adviser had several discussions with a Mr Pallisch and a Mr Pieter Jehle, who helped to secure a loan from an international financier, Mr Walter Robin.
"Mr Robin agreed to loan me DM40 million on condition I provided a 10 per cent deposit myself," said Mr Wiese. "I did not have the full DM4 million required and Mr Pallisch and Mr Jehle said they could help me raise the money."
He himself paid over DM200,000 as his own part of the deposit, plus DM6,000 and DM30,000 in separate lots as expenses to Mr Jehle and Mr Pallisch. However, at the end of July 1996, Mr Robin was complaining that he had not received the deposit and could not fulfil the contract. "It was very stressful for me," said Mr Wiese.
Negotiations continued, and during August Mr Pallisch and Mr Jehle said they had given Mr Robin the money in cash and produced receipts purporting to be signed by him. At one stage, Mr Jehle flew from Ireland to a meeting in Zurich, and both he and Mr Pallisch appeared "very nervous".
"When I showed the receipts to Mr Robin he laughed and said that was not his handwriting, it was a joke."
It is understood Mr Pieter Jehle is a son of Ms Maria Bernadetta Jehle.
The trial continues.