A High Court judge has ruled that James ‘Mago’ Gately and his partner Charlene Lam are entitled to free legal aid to defend claims by the Criminal Asset Bureau (Cab) that their family home was bought with the proceeds of crime.
Cab had opposed their application, claiming the couple could afford to pay for their own legal representation. It said the couple went on foreign trips to the Caribbean and Southeast Asia and spent over €440,000 on their home
In his judgment on Wednesday, Mr Justice Alexander Owens said he was prepared to make an order granting the couple legal aid to defend the claim against the assets.
He considered all of the evidence put before the court and found the matter was “serious” for the couple, as it “involves an application to seize their family home”.
The judge noted evidence put before the court by Cab about past “extravagant holidays” taken by the couple.
He also said Cab had tendered evidence about the purchase of a car, which he noted the respondents say was part-funded from a National Lottery win.
However, the judge said the evidence showed their spending on such items had “dried up” lately and the court was more concerned about their recent circumstances.
The judge also said there was no evidence to show that Mr Gately had earned any income from working as a trainer.
The couple, the judge concluded, does not have the means to pay for legal representation in the proceedings.
The judge was prepared to make orders directing that the couple must be provided with legal aid to cover the cost of one solicitor and one barrister only.
He was not prepared to extend that order to allow the couple to be represented by a senior counsel.
The judge also put a timetable in place for the exchange of documents between the parties so that the case can go to hearing as soon as possible.
In its proceedings against Mr Gately, who it is alleged is heavily involved with an organised crime organisation, and Ms Lam, Cab seeks orders in respect of their home in Coolock, Co Dublin, as well as assets including a Volkswagen Golf GTI car, and a ladies’ Rolex watch seized by the bureau in 2019.
Cab claims the assets were acquired with the proceeds of crime and are seeking various orders under section 3 of the 1996 Proceeds of Crime Act.
Cab claims the couple spent over €440,000 on renovating and upgrading their Coolock home. It also alleges they seemed to be able to change cars on a regular basis.
The couple denies the claims and says the assets were acquired with legitimate funds.
Mr Gately has not worked since 2015 due to a threat on his life and Ms Lam is a self-employed beautician who pays the mortgage on the family home, as well general living expenses out of her own modest income.
Her business suffered during Covid-19 and for a time she was in receipt of the Pandemic Unemployment Payment.
Mr Gately, who is aged in his early 30s, claims their home was purchased in 2013 for €125,000.
He claims he paid a deposit on the property out of his earnings, which he derived from working in a hairdressing business and a shop.
The remainder of the money used to pay for the house was from a bank mortgage.
The car seized was paid for out of their own funds, he claims.
The court also heard Ms Lam had an Audi A6 car which, it is claimed, was part purchased with money from a family member, her own earnings, and winnings from the National Lottery.
The case will be next mentioned before the court next month.