‘SOPHISTICATED’ | 

Four executives of Custom House Capital jailed for fraud which cost investors millions

Victims were “systematically deceived in a sophisticated operation” which was carried out for over two years

Yesterday at 16:54

Four senior executives of Custom House Capital have been sentenced for their roles in a “highly organised” and “sophisticated” operation to defraud investors in the firm over a decade ago.

The company’s former CEO Harry Cassidy (67) was handed a sentence of six years and 10 months by Judge Orla Crowe today at Dublin Circuit Criminal Court.

Judge Crowe said victims were “systematically deceived in a sophisticated operation” which was carried out for over two years by people who owed them fiduciary duties. She said the offending was “most egregious”.

She handed John Whyte (53), former head of private clients, a sentence of four years.

Paul Lavery (47), head of finance, received a sentence of three years.

John Mulholland (73), non-executive director of Custom House Capital (CHC), was handed a 12-month sentence.

Cassidy, of Clon Brugh, Aitkens Village, Stepaside, Dublin, Whyte of Beechpark, Lucan, Dublin, and Lavery of Rafeenan, Ballynod, Co Monaghan, pleaded guilty to conspiring with others to defraud investors in and clients and customers of CHC by intentionally misleading them as to where and/or how their assets had been placed contrary to common law.

John Mulholland (73) of The Foxes Covert, Mount Juliet Estate, Thomastown, Co Kilkenny, pleaded guilty to one count of being neglectful in the discharge of his duty of as a non-executive director of CHC.

The court heard this was in relation to the commission by the company of acts of dishonestly by deception inducing clients to entrust funds to the company or to refrain from removing funds previously entrusted to the company with the intention of making gain for itself and causing loss to another.

All of the offences occurred within the State on dates between October 1, 2008 and July 15, 2011.