Barrister and tax adviser Patrick Russell was arrested and brought before the High Court today in connection with proceedings over alleged misappropriation of €580,000 given to him for purposes including clearing another man's tax liabilities.
After agreeing to provide a statement of his financial affairs within two weeks and to return to court then, he was told by Mr Justice Quirke he was free to go.
Patrick Griffin (66), a professional musician, of Knocksimon, Killucan, Co Westmeath, claims he made a voluntary disclosure to the Revenue in early 2007 after which he employed Mr Russell, then of Emerald Consulting International (ECI), Patrick Street, Mullingar, Co Westmeath, to act as his tax consultant.
Mr Griffin, who is being pursued by the Revenue Commissioners for €333,000, claims he had, on the advice of Mr Russell, transferred all his life savings of about €580,000 in various payments to Mr Russell and/or ECI in 2007 and 2008.
He claims he understood Mr Russell had paid €243,560 to the Revenue out of that €580,000 sum under an agreed settlement with Revenue of Mr Griffin's tax liabilities.
He claims he later learned that sum was not paid and there were insufficient funds in accounts of Mr Russell or of Emerald Consulting International to clear cheques sent by Mr Russell to the Revenue to clear Mr Griffin's tax liabilities.
In January 2010, the Revenue secured judgment for €333,555 against Mr Griffin from the Master of the High Court. Mr Griffin has appealed that judgment order and is seeking to join Mr Russell to the proceedings.
On Monday, Mr Justice John Quirke made an order directing that Mr Russell be attached and brought before the court for the purpose of being asked about matters in connection with his financial affairs. Mr Russell was arrested and appeared before the judge this afternoon.
Counsel for Mr Griffin said his client had given €580,000 to Mr Russell and asked him to settle his tax affairs with the Revenue but that was not done. Mr Griffin was aged 66 and had no other assets to pay the Revenue, counsel said.
"Only Mr Russell can say where the money is," he said. The matter had been referred to the gardaí and was "at an advanced stage", counsel added.
Representing himself, Mr Russell, who the court was told has an address in Manchester, England, and had a previous address at Steelstown, Rathcoole, Co Dublin, said he was "a bit confused" as to why he had been arrested and said he would have come to court voluntarily "if I was asked".
He had had lunch with Mr Griffin some weeks ago, had come back from the UK voluntarily to answer questions and his arrest was "totally unnecessary", he said.
Mr Justice Quirke told Mr Russell it was alleged Mr Griffin had transferred €580,000 to him to pay the Revenue and that Mr Russell misappropriated that sum.
Mr Russell agreed he had received €580,000 from Mr Griffin. He said the money was "not just for Revenue" and Mr Griffin had asked him to negotiate a tax settlement and take insurance funds to see if he could get a better return. The money was "lost" and he did not have it, he said.
"I do owe him money, I accept that," he said. He also agreed he owed Mr Griffin more money than was owed by Mr Griffin to the Revenue.
Asked by the judge when he would pay the money, he said he could not pay it now but would pay it "when I have it". "I lost that money," he said.
He agreed he had sent cheques to the Revenue to pay Mr Griffin's tax liability but these were not honoured. He also agreed with the judge this was "an appalling state of affairs".
Mr Russell said he was prepared to consent to a judgment against him but intended to defend other allegations made against him and wanted to see the legal documents in the case. He also agreed to provide a statement of his financial affairs to the court within two weeks and told the judge he would attend court then.
Mr Russell then asked the judge was he free to go and the judge said he was. He then left the court.
