Paschal Phelan engaged in a series of complex transactions which perpetrated a multimillion pound fraud at several Master Meat Packers companies, it was alleged before the High Court yesterday. As a result of the alleged frauds, Mr Phelan benefited personally by more than £3.5 million (€4.44 million) and now owed the firms some £15 million including interest, it was claimed.

Mr Paul Gallagher SC, for 12 Master Meat firms founded by Mr Phelan but now controlled by Mr Larry Goodman, said the court would hear that, between 1985 and September 1988, there was "wholesale falsification" of the accounts of the companies and "orchestrated scams", which involved defrauding the companies, the government, the Revenue and farmers of substantial sums of money.

Although Mr Phelan swore before the beef tribunal 10 years ago that no under-the-counter accounts were kept in the Master Meat firms, he had now admitted such accounts were kept for the purpose of making payments to employees. Mr Gallagher alleged that Mr Phelan's sister, Ms Ann Phelan, a chartered accountant, was involved in "a significant number" of the alleged frauds.

Even if the transactions which his side were impugning were not frauds, they were illegal and contrary to general law and the provisions of the companies legislation.

Counsel was continuing his opening of an action by Master Meat companies against Mr Phelan and his firm, Master Cut Foods. The case is one of a number involving Mr Phelan, Mr Goodman and others being heard in parallel by Mr Justice Murphy.

After Mr Gallagher concludes his opening - set to last five days - Mr Justice Murphy will deal with a number of motions brought by the parties involved, including one from Mr Phelan asking the court to strike out Mr Goodman's proceedings as an abuse of process.

Yesterday, Mr Gallagher presented the judge with a list detailing alleged frauds perpetrated by Mr Phelan from 1985 to September 1988. He said the list indicated Mr Phelan had taken some £3.5 million personally from the Master Meat Packers companies.

Mr Gallagher said the firms were also claiming against Mr Phelan for alleged fraud related to the movement of monies from one Master Meat Packers firm to another. He said the total misappropriated in that fashion was £1.28 million. With interest, his side was claiming a total £4.29 million in that regard.

Experts on fraud are to testify as to the nature of the fraud perpetrated, and Master Meats staff to tell how they saw fictional cheques being written.

Mr Gallagher said Mr Phelan was saying he knew nothing of this but this was disputed. Mr Phelan had a good knowledge of accountancy and there would be direct evidence of his knowledge of what was happening.

The hearing continues today.