THE HIGH Court has approved the release of €32 million in cash and equities in client accounts to more than 700 customers of the failed Dublin investment firm Custom House Capital.
On a request from the firm’s official liquidator, Kieran Wallace of KPMG, Ms Justice Mary Finlay Geoghegan yesterday approved the release of the cash and equity in the accounts.
Clients of Custom House have had their accounts, including pension funds and cash deposits, frozen by the court while Mr Wallace determined the extent to which €66 million in client funds misappropriated by the firm were lost.
Mr Wallace is investigating the misuse of client funds after Central Bank inspectors found the firm had siphoned off cash from customers’ cash and equity funds without their knowledge to cover shortfalls on property investments.
The liquidator gave an update to the court on his work so far on the reconciliation of client funds.
The cash and equities to be released were held mostly in personal retirement savings accounts (PRSAs) and approved retirement funds (ARFs), and will be returned to the control of about 700 of the firm’s 1,600 clients over the coming days.
Mr Wallace is still reconciling assets and funds at the firm to individual client accounts affected by transfers to cover the property losses at the firm where businessmen Harry Cassidy and John Mulholland were directors.
This process is expected to take several more months. Mr Wallace will return to the court in four weeks when he will provide a further update on his work. Accountancy firm Horwath Bastow Charleton is managing the clients’ assets.
Mr Justice Gerard Hogan previously described the company’s activities as “a sort of Irish Ponzi scheme”.
