Financial Consultant Repays Funds with Misappropriated Money – Irish Times
Accountant Admits Misappropriation, Faces €588,301 Judgment
Dublin, Ireland – Accountant David Kennedy and his firm, David Kennedy Financial Consulting Ltd, have consented to a series of court orders, including a personal judgment of €588,301 in favour of two third-party companies. The revelations emerged in court as Mr. Kennedy admitted to misappropriation and breach of duties, prompting a judge to question his continued role as a liquidator.
The High court heard that Mr. Kennedy is taking steps to wind up his business, citing a backlog of othre liquidations he must address. Mr. Justice Brian Cregan expressed meaningful concern that Mr. Kennedy coudl “possibly continue for a day longer as a liquidator” given his admissions.
Representing the defendants, Micheál D O’Connell SC, argued that the existing orders prevent Mr.Kennedy from misappropriating funds from the approximately 50 other companies he manages. He stated that allowing Mr. Kennedy to continue in his role, albeit under strict supervision, would facilitate an orderly winding down of these businesses and potentially improve the situation for all affected clients.
Jarlath Ryan SC, for the plaintiff companies, indicated his clients were satisfied with the measures in place, which include limiting Mr. Kennedy to spending €1,000 per business transaction outside of normal wages, with all activities monitored by newly appointed liquidators. Mr. Kennedy is also mandated to disclose all his assets.
Further orders stipulate that Mr. Kennedy is limited to €15,000 in living expenses until the end of October. He must also repay funds diverted from the plaintiff companies and is restrained from reducing the assets in his consulting company below the €588,301 judgment amount.
In a significant move to recover funds, Mr.Kennedy has been ordered to transfer €300,000 from a Bank of Ireland account to Micheál Leydon,a receiver appointed by the court. The court was informed that Mr. Kennedy had already transferred €200,000 from this account to previous receivers who had replaced him in the plaintiff companies’ liquidations. He is also required to hand over all books and records of these companies to the appointed liquidators. The court also heard that gardaí are investigating Mr.Kennedy, having seized records, and that the Office of Corporate Enforcement has been notified.
Proceedings against Mr. Kennedy’s wife, Danielle Colgan, who is also a defendant, have been adjourned generally upon payment of €19,000 to the receiver. Mr. O’Connell stated that Ms. Colgan was an “unknowing recipient” of funds from her husband.Ms. Colgan is the sole shareholder of David Kennedy Financial Consulting.
Earlier this month, the court had granted orders freezing the defendants’ assets up to €800,000, the sum Mr. Kennedy was engaged to capitalize on behalf of the two plaintiff companies.
Upon the case’s return, Mr. Kennedy reportedly “put his hands up” regarding the misappropriation and expressed a desire to assist in recovering the money.
Mr. Justice cregan adjourned the case until October, requesting input from the Association of Chartered Certified Accountants (ACCA) regarding their potential involvement as a notice party in the proceedings.