High Court freezes GTD International account linked to Arden Forestry Management

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

The High Court granted a freezing order over a Dubai company’s bank account linked to Arden Forestry Management. The proceedings were reported on 4 November 2016.

Justice Tony O’Connor made the order on an ex parte basis, returnable the following week. Declan De Lacy, provisional liquidator of Arden Forestry Management and represented by Brian Conroy, sought the order over funds in a Noor Bank account belonging to UAE-registered GTD International amid fears of dissipation.

Counsel said Arden Forestry Management was under Garda investigation and appeared to have “the hallmarks of a ponzi scheme”. The report said the firm had raised €4 million from UK investors to buy Irish forestry. Counsel said only €200,000 was spent on forestry and the rest appeared to have gone elsewhere.

Counsel said approximately €1.5 million of investors’ funds had been transferred to the linked Dubai company’s account. The report said some funds were thought to have been dissipated. Although €100,000 had been returned to the liquidator, there were concerns about a remaining €600,000 being dissipated.

The report said the High Court had appointed Declan De Lacy provisional liquidator the previous month, on the directors’ application, after hearing the firm was insolvent and unable to pay its debts. The court had heard that a blocking order on its main AIB account following the Garda investigation left it effectively unable to operate.

In an affidavit, Arden Forestry Management director Garret Hevey said he and his fellow directors denied wrongdoing and the frozen AIB account had put the company in an impossible position. The report said delayed land purchases led the firm to invest funds in Spanish property on advice from a Gibraltar-based company. Its directors established GTD International to buy properties in Spain.