‘Concealed Financial Interest’

at

This morning.

Via Irish Times.

The judge investigating the Siteserv affair has found that the company’s chief executive had a “concealed financial interest” in Denis O’Brien’s successful bid for the business.

Brian Harvey – a Siteserv co-founder – backed Denis O’Brien’s proposal after negotiating a significant shareholding in the billionaire’s new company if his bid won, Mr Justice Brian Cregan said.

“The commission has found that at key stages in the sale process, Mr Harvey improperly favoured Mr O’Brien’s bid and put his own personal financial interests ahead of the interests of the company and its main creditor, the bank,” said the draft report.

Siteserv chief ‘concealed financial interest’ in Denis O’Brien bid, judge finds (Irish Times)

Meanwhile…

Friday: Now Den

Previously: Deal Timeline

RollingNews

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6 thoughts on “‘Concealed Financial Interest’

  1. Kin

    Surly criminal actions need taking
    Especially into his avoidance of paying capital gains tax by pretending to live in Portugal while owning a house he bought on raglan road for £punts 7 million which he started unnecessary renovations to avail of a loophole
    Google the article in the indo which was about when he tore out the kitchen and arguing about an AGA cooker
    All those profits from the sale of ESAT escaped being taxed by the revenue
    And with another article regarding the revenue going after people accused by them of under valuing their homes for LPT
    this guy avoided paying hundreds of millions
    Maybe the same amount of LPT under Clare do for the whole country over 10 years

    1. K. Cavan

      The State spent a couple of million pursuing him for the tens of millions he owed in CGT for the sale of the telecoms company he acquired by dodgy dealings with a Minister, then dropped the case because he was so easily able to string the case out forever that the risk of even higher legal fees was not justified, they said.
      Nothing has been done to prevent this happening again, with exactly the same result.
      He did take one huge bath on his Independent shares, which plummeted in value as fast as the circulation of its newspapers, which went in lockstep with their veracity as news sources.

  2. gringo

    Seems like a good deal for all concerned thanks to the Irish taxpayers. Same as it ever was.

  3. johnny

    seller was not able do this w/o buyer agreeing or proposing it and advisors to paper it.

    “The co-founders of Siteserv, Brian Harvey and Niall McFadden, agreed on a deal to obtain 15% of the business following its forced sale. Neither its banker IBRC nor its advisors knew about the arrangement.”

    loans outstanding were around 150 million
    sold for 50 million
    so 100 million loss to state

    Harvey/McFadden stake was worth close 15,000,000 est vale was closer 100 million.

    it’s called self dealing or breaching fiduciary duties,is totally illegal in Canada and US-i’m not a Irish lawyer,so…

    …Self-dealing is illegal and occurs when a fiduciary, acts in their own self-interest in a transaction instead of the best interest of their partners, employer, or clients….

    The advisors KPMG received €450,000 and Davy €275,000 had to be aware this.

    1. K. Cavan

      There is no way Davy or KPMG could’ve remained unaware, unless engaged in seriously bad practice, verging on incompetence. If they were competent, they were complicit. There is no chance that they will be pursued for either their breach of trust or their incompetence.

  4. Kin

    Ah sure
    Remember the Irish lotto which was not won for 6 months then suddenly when the questions were asked suddenly it’s won then won several times following
    KPMG were the adjudicators
    Remember the recent fiasco implicating Davy stockbrokers and mistakes
    Enough said
    The best is they all have liability insurance to practice but all were involved in auditing Irish banks I; the run up to the crash and no one even talked about going after their insurance to compensate the taxpayer
    No heads rolled

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