A solicitor allegedly aided a couple in an attempt to conceal €10,000 from the official administering their bankruptcy, a disciplinary inquiry has heard.
Anthony Joyce attempted to “shelter” the €10,000 sum in his client account so that William and Mary Burke, of Portumna, Co Galway, got the benefit of it, barrister Hugh McDowell, for the Legal Services Regulatory Authority, said.
The Insolvency Service of Ireland (ISI) alleged this involved the commissioning of a criminal offence under the Bankruptcy Act and conduct likely to bring the solicitors’ profession into disrepute, counsel said.
During the couple’s bankruptcy, payments of more than €5,000 were made by Mr Joyce on their behalf to the ISI and, after they exited bankruptcy in late 2018, Mr Joyce made five separate payments to them, amounting to €4,850, counsel said.
Mr Joyce, who is also a personal insolvency practitioner, kept none of the €10,000, the inquiry heard from Denis Ryan, operations manager in the ISI’s bankruptcy division.
A three-member Legal Practitioners Disciplinary Tribunal began the inquiry on Thursday into the ISI complaint, made in 2020, against Mr Joyce, of Anthony Joyce & Co Solicitors, with offices at Oliver Bond Street, The Liberties, Dublin 8.
Mr Joyce denies the claims. His counsel, Alan Doherty SC, sought but failed to get an adjournment of the inquiry on grounds including alleged failure by the ISI to provide full notice in advance of its claims.
The ISI alleges that, between November 27th, 2017 and November 28th, 2018, Mr Joyce held, or purported to hold, €10,000 in the form of a bank draft and/or in a client account on behalf of William and/or Mary Burke, who were adjudicated bankrupt on November 27th, 2017.
It is alleged that Mr Joyce knew, or ought to have known, the money was an asset which vested in the official assignee in the bankruptcy for the benefit of creditors.
Mr McDowell said Ms Burke had on October 13th, 2017, received €11,348 from her An Post account and the couple on October 23rd procured a €10,000 bank draft from Bank of Ireland.
On October 24th, Mr Burke sent the draft and a signed covering letter to Mr Joyce which stated the draft, “as agreed”, was to be stored safely at the firm “until further notice”.
The couple were adjudicated bankrupt on November 27th, 2017 and, on December 27th, 2017, Mr Joyce lodged the draft to his client account.
The couple remained as bankrupts until they were discharged on November 27th, 2018, and some payments were made from the €10,000 to the ISI prior to discharge.
About a week after the Burkes exited bankruptcy, Mr Joyce began to dissipate some funds to them and five payments totalling €4,850 were made to them on dates up to April 2019, counsel said.
The ISI, having become aware of the An Post account payment to Ms Burke, made inquiries and Mr Burke told it in May 2019 he had placed €10,000 “in trust” with Mr Joyce.
In June 2019, the Burkes wrote to the ISI stating, that instead of placing it in trust, the money was intended to cover legal fees they had incurred or would incur. Mr Burke also said a relative of his would repay the €10,000 to the ISI.
Mr McDowell said the ISI claims Mr Joyce attempted to conceal existence of the €10,000 and to “shelter” it so the Burkes would get the benefit, rather than their creditors.
Mr Joyce had told the ISI the money was for legal fees but that, out of sympathy or charity, he gave some money back to the Burkes, Mr McDowell said. The ISI contends that is not a true account of what happened, he said.
The inquiry was adjourned until March 12th.
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