The Director of Corporate Enforcement has asked the High Court to disqualify from involvement in the management of any company the auditor who had acted for a company allegedly controlled and used by the late accountant Des Traynor to facilitate controversial bank account withdrawals and tax evasion.
The director claims Patrick McCann, a certified public accountant who practises under the title McCann and Associates, is unfit to be involved in the management of any company.
Mr McCann was auditor from 1990 to 1993 to Kentford Securities Ltd, the company the director alleges was used to facilitate cash withdrawals by certain persons from Ansbacher (Cayman) Limited deposits held in Ireland and tax evasion by such persons.
Mr Traynor is alleged to have effectively controlled the bank accounts in the name of the company in both Guinness & Mahon (Ireland) Ltd and the Bank of Ireland.
Despite the auditor's view that the financial statements gave a true and fair view of the state of the company, this was not the case given the company's assets held in four bank accounts, the director contends. It appeared no books existed in which the bank balances were noted, the court was told.
The director claims Mr McCann committed an offence by serving as auditor while also being a director of Kentford; produced "materially mis-stated" financial statements for Kentford; issued "a false audit opinion" on these financial statements; and produced "a forged letter" to justify the basis of his audit approach for Kentford.
It is claimed Mr McCann agreed to be auditor of Kentford while having significant threats to his objectivity which he failed to mitigate; relied on insufficient evidence to reach his audit opinion for the Kentford financial statements; and issued an unqualified audit opinion on financial statements that were misleading.
Mr McCann has denied the claims. He denies he was guilty of forgery in allegedly producing to Gerard Ryan, an authorised officer appointed to inquire into Kentford, a letter from Des Traynor purporting to be signed by Mr Traynor and to be dated January 23rd, 1990.
The director alleges the top of the letterhead contained a seven- digit telephone number which number only came into existence after the date appearing on that letter.
The court heard Mr McCann had stated he had relied on information from Mr Traynor, who died in May 1994, as to the status of Kentford.
Mr McCann had said Mr Traynor was regarded prior to his death as an honourable man who was well respected in the business community and he, Mr McCann, had relied on assertions by Mr Traynor that Kentford was a non-trading trust company, holding no assets and having no liabilities.
Mr Traynor was regarded as an authoritarian figure who maintained and had possession of the books of the company and he had relied on his "unblemished" reputation. Last March, Mr McCann lost a High Court bid to halt the disqualification proceedings on the grounds of delay in bringing them and the application for the disqualification order was yesterday opened by Brian Murray SC, for the director, before Mr Justice Michael Peart.
The hearing continues today.
