Ex-directors of rural supercar firm facing fraud claims

  2 hrs ago

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Former directors of a company which purportedly imported and exported high-value “supercars” from a rural location in the west of Ireland are facing claims they intended to defraud creditors, including the Revenue Commissioners.

The firm, Kleio Tool and Plant Hire Ltd, claimed to have dealt in Rolls Royce, Lamborghini, Ferrari, Porsche and Range Rover cars, some of which were said to have been sold for sums ranging between €165,000 and €314,000 each.

The company, which traded as ‘Go Direct’ and was registered at various times at addresses near Boyle, Co Sligo and Ballaghadereen, Co Roscommon, has been hit with a €2 million tax assessment after claiming an exemption from VAT on purported car sales exports while allegedly failing to provide shipping or export documentation in relation to the transactions.

A Revenue-appointed liquidator has claimed the manner in which the company was run was “highly suggestive of fraudulent trading or the significant laundering of money”.

The allegations have been made in a lawsuit taken by liquidator Myles Kirby, of Kirby Healy Chartered Accountants, against former Kleio directors Kieran and Helena Sherlock.

The case was accepted onto the list of the fast-track Commercial Court yesterday.

John Kennedy SC, counsel for the liquidator, said it involved allegations of a form of VAT fraud known as a missing trader intra-community fraud.

In an affidavit, Mr Kirby stated: “Whilst large sums of money flowed through the company’s bank accounts purporting to relate to the purchase or sale of vehicles of this nature, there are no books and records proving that these vehicles were ever actually imported or exported.”

The action is set to be defended by the Sherlocks and the court heard efforts would be made to appeal the Revenue assessment.

Mr Kirby is seeking declarations the former directors were knowingly party to the carrying on of the business with intent to defraud creditors or, alternatively, that they conducted business in a reckless manner. He also wants declarations the Sherlocks failed to keep proper accounting records, in contravention of the Companies Act, and that they should be made personally responsible for debts and liabilities of the business.

“We say it is a case where personal responsibility will attach to the respondents in relation to their behaviour and we will be looking for orders for a consequential disqualification if we are right in relation to that,” Mr Kennedy said.

The Sherlocks were directors of the firm between May 2015 and July 2018.

In his affidavit, Mr Kirby said the nature of the transactions was “highly questionable”.

The liquidator alleged Kleio did business with companies in Northern Ireland and Britain which did not appear to be genuine trading entities. These companies mostly had short lifespans, were struck off for not filing accounts and were registered at residential properties rather than commercial premises.

Mr Kirby said large sums of money passed through Kleio’s bank accounts which were often then transferred immediately to other parties.

“The pattern of movement is entirely atypical of legitimate trading behaviour but is entirely consistent with money laundering operations or other unlawful activity,” he alleged.

One alleged transaction involved the sale of a Rolls Royce Phantom, worth €313,985, a Mercedes Maybach, worth €205,684, and a Porsche Carrera, worth €107,902, to a company in Dubai. The liquidator said there was no evidence the vehicles were ever registered in Ireland and Kleio was unable to provide any shipping or customs forms.