A company that claimed to sell investors gold and silver bullion was operated as “a Ponzi-scheme,” and defrauded its customers, the High Court has heard.
The company, Irish Gold and Silver Bullion Ltd (IGSB), with a registered address at The Crescent, Monkstown, Dublin, was wound up last year and chartered accountant Myles Kirby was appointed as liquidator.
Arising out of a thorough investigation of the firm’s affairs, Mr Kirby has brought High Court proceedings against the firm’s director and sole shareholder, Nicholas Wickham, who it is claimed recklessly got customers to put money into IGSB which the defendant knew could never be repaid.
Represented by John Kennedy SC, Arthur Cunningham BL, instructed by Michael Quinlan of RDJ solicitors, Mr Kirby also claims that Mr Wickham misapplied customers’ monies to various entities for improper purposes, including making unlawful payments for his own personal benefit.
Mr Wickham concealed the extent of the company’s financial situation and failed to maintain proper records, and gave false representations that funds invested in IGSB would be repaid when it was “hopelessly insolvent”, Mr Kirby said.
It is claimed that the alleged Ponzi scheme was operated by IGSB for several years and when Mr Kirby was appointed as liquidator there was “no stock of valuable metal in the company.”
To date Mr Kirby said he has been able to identify €1.03 million that remains due to creditors of the company.
On Tuesday, Mr Justice Brian O’Moore…
