FINANCIAL SPREAD betting business Marketspreads is pursuing former executives Brian O’Neill and Fergus Rice for €1.4 million that they diverted from the company to another business in which they were involved.

The Commercial Court heard yesterday that Marketspreads intends seeking summary judgment for €1.4 million plus interest, a total of €1.7 million, against former chief executive Mr O’Neill, of The Copse, Beresford, Dublin, and former executive director Mr Rice, of Pembroke Road, Dublin.

Both men left the company midway through last year. Late in 2010 and early in 2011 the Marketspreads board discovered that advances, totalling €1.4 million, had been made to Sports Spread Betting Ireland, in which Mr Rice has a 60 per cent stake and in which Mr O’Neill is also involved.

The court heard yesterday that the company claims that both men acknowledged that they were personally responsible for the money. The Central Bank was also informed of the situation.

All spread betting companies are treated as financial service providers by the regulator.

Letters from the company to Mr O’Neill and Mr Rice show that both agreed in writing last June to repay the money, which was classed as a loan, and any outstanding interest. They resigned from Marketspreads shortly afterwards.

They also agreed to sell their shares in the company’s parent, or Spreadbetting, to facilitate the repayment of the cash.

In October the company sent demands to both men. Those letters, seen by The Irish Times, informed them the sum due was a total of €1.7 million. The letters warned that if the money was not paid in full in seven days the company would issue proceedings to recover it.

Mr Rice told the court yesterday that he did not agree that the amount due from him was €1.7 million, and indicated he believed that the liability should be divided between himself and Mr O’Neill.

“There are two people involved here, and they have tried to lump us both into one,” he told Mr Justice Peter Kelly. He added that it was agreed that an independent expert would be appointed to verify the final amount due and said that had not happened. He also argued the interest due should not be more than €200,000.

Mr O’Neill was not in court yesterday.

The company’s senior counsel, Rossa Fanning, said it was clear from letters and other documents that the liability was joint and several, meaning both men were liable for the full amount, either individually or jointly. He said Mr Rice had not denied liability.

Justice Kelly adjourned the case to allow time for Mr Rice to get legal advice and deal with a number of other issues.

The company did not comment yesterday.