Courts / Dublin / Report

Clerys operators used "ponzi scheme" to pay concession holders, High Court told

Summary

In a High Court hearing, Jeremiah Healy SC represented LS Catering, a company linked to Lorraine Sweeney, and alleged that OCS Operations, the former operators of Clerys, ran a payment system that effectively functioned as a Ponzi scheme. Healy argued that all sales receipts, including those of concession holders, were deposited into a single bank account and that OCS used the proceeds from concession sales for its own purposes, paying concession holders only from the previous month's sales. The court considered that OCS had been losing money and lacked sufficient funds to meet its obligations, with an estimated €1.4 million owed to 50 concession holders. Judge Donald Binchy granted directions to release €654,000 to concession holders for the period 4–12 June, while the status of May sales remained unresolved. LS Catering was also permitted to sue OCS for breach of trust.

Who, what, where, when and why

What: Report matter: Clerys operators used "ponzi scheme" to pay concession holders, High Court told. Procedural stage: hearing_or_decision

When:

• June 12th Hearing Or Sentence
• June 4th Hearing Or Sentence
• 2015-12-11 Publication

Places mentioned

Topics

Stage Hearing Or Decision

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Read the original CNI report