Broker Dolphin’s money is “priority”
An investment broker who has sold Dolphin home loan notes has told his clients that brokers will have priority to get the money back before their clients from an ongoing liquidation process.
The group set up by the Irish brokers – GPG Redress Group – has reportedly transferred in recent days a six-figure sum to help finance the liquidation of part of the Irish operation of Dolphin.
Invest 123 Ltd said in an update to investors at Dolphin, to whom it has sold, that “money transferred is considered a liquidation cost and will therefore have priority in the event of a return of funds.”
Brokers could waive their right to reimbursement of this contribution, he added.
“The cost of a robust liquidation process is significant and this contribution will help the liquidator and his lawyers to continue their work,” he said.
The liquidation would involve “stalking funds through overseas bank accounts and obtaining disclosure orders if necessary,” he said. “It may be necessary to take legal action against the parties, but this is not final.”
More than â¬ 100million was poured by Irish investors into two Irish investment vehicles linked to Dolphin before the scheme collapsed.
Myles Kirby has been appointed liquidator of one, MUT103 Ltd, while KPMG has been appointed to liquidate the other, MUT116.
Kirby sought funding from the brokers who sold the investments in an attempt to collect money for the investors.
In its update to its clients, Invest123 said funds were sent to Kirby by the individual member companies of the GPG Redress Group in order to “assist only the liquidator in his work in seeking the best possible outcome for investors.”
The broker’s contributions were made on behalf of clients and “cannot and will not influence the liquidator in his work,” he said.
Kirby is expected to commit to determining exactly how investor funds were used by MUT103, including tracing funds through overseas bank accounts and obtaining disclosure orders if necessary.