The High Court has said investors in Custom House Capital funds will be repaid €29m

Almost €29 million in assets embezzled from clients of collapsed investment firm Custom House Capital will soon be returned to them, according to lawyers for the official bankruptcy trustee.

The distribution amounts to €41 million in recovered, misappropriated funds that have been returned to customers since the company went bust in 2011 and investors suffered losses totaling €61 million.

The High Court heard on Wednesday that the amounts recovered from insolvency practitioner and trustee Kieran Wallace were significantly better than previously forecast.

Barrister Paul Brady said on behalf of Mr Wallace: “The sale of assets generated €16 million more than was estimated and forecast as recently as July 2020. This means that 28.9 million euros must now be distributed.”

He said Mr Wallace was working with Davy to send letters to 1,292 customers explaining how funds could be sent to them. The disclosure will be a source of relief for many investors burned after the company’s collapse.

Claims for compensation must be certified by the insolvency administrator.

However, the process was delayed for a significant period of time while the state’s investor compensation scheme, the Investor Compensation Company DAC, asked for clarification on an aspect of its statutory powers.

Despite the upbeat progress report, the court heard some investors were unhappy.

Roger Day, an investor who previously appeared in court as a “legitimately conflicting” representative of 1,300 clients’ interests, said he would seek reappointment to the position.

He told Justice Brian O’Moore that there were “major concerns” after some claims were dismissed and claimed Mr Wallace failed to take note of the decisions of another judge, Justice Mark Heslin.

His motion, due to be heard next March, could be rejected by Mr Wallace.

Mr Brady called the motion “out of place”.

The lawyer said while it is now estimated that the majority of the embezzled funds would be recovered by the end of next year, the “systemic misuse of funds” is such that it could be “quite a long time” for a particular cohort to be recovered could become.

This includes misappropriated funds that have been mixed with legitimate customer investments.

“In many of these cases, it’s just not possible to realize the funds properly,” he said.

“That is not appropriate. It would not be in the interests of other investors and it would not maximize the return on embezzled funds. It will take time to allow these assets to flourish on their own.” The High Court has said investors in Custom House Capital funds will be repaid €29m

Fry Electronics Team

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