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 in south Dublin was wound up last year, and chartered accountant Myles Kirby was appointed as liquidator. He 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. 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 gave false representations that funds invested in IGSB would be repaid when it was “hopelessly insolvent”, Mr Kirby added.
It is claimed that the 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, he has been able to identify €1.03 million that remains due to creditors of the company.
On Tuesday, Mr Justice Brian O’Moore granted lawyers for Mr Kirby a temporary freezing order, known as a Mareva injunction, against Mr Wickham and a company he allegedly owns and controls called Hamden Development Homes UK Ltd.
Mr Kirby claims that Mr…
