By Tom Arden
The Supreme Court has upheld a Criminal Assets Bureau order confiscating a Dublin family home bought with the proceeds of crime, rejecting an appeal by the wife of John Kelly.
The High Court had ordered in 2007 that the house, along with certain bank funds, be transferred to the Minister for Finance. T.T., whose identity remained protected, was allowed to remain in the home with her children until June 30, 2008.
The property had been bought by Kelly in 1990 for £63,500. The judgment records that £58,300 of the purchase price was paid in cash. By the time of the disposal proceedings, both respondents accepted that the property represented proceeds of crime arising from Kelly's activities, particularly drug dealing.
T.T. argued that confiscation would create a serious risk of injustice. She relied on her lack of criminal involvement, her claimed ignorance of the source of the money, her employment and financial independence, and a 2007 Circuit Court declaration that she held a 50% beneficial interest in the family home.
Mr Justice John MacMenamin held that none of those factors was sufficient on the evidence presented.
The court said a spouse's lack of personal criminality or asserted ignorance of the source of funds does not automatically prevent confiscation. It also noted that T.T. had produced no evidence that she had contributed directly to the purchase or increased value of the property, or that she and her children would become homeless if the order took effect.
The Circuit Court declaration was given limited weight because it had been made on consent, CAB had not been notified beforehand and the family proceedings appeared to have been brought specifically against the background of the pending confiscation case.
The Supreme Court stressed that courts must consider proportionality, particularly where a family home is involved. However, people cannot retain the benefit of property purchased with crime proceeds merely because they have lived there for a long period.
The appeal was dismissed and the High Court confiscation order remained in place.