The chief prosecution witness in Mr Michael McKevitt's trial on charges of directing terrorism attempted to set a gambling and banking operation on a boat off the Florida coast, the Special Criminal Court heard today.
In the second day of his cross-examination, Mr David Rupert, an American businessman who was paid to infiltrate dissident republicans by the FBI and the British Security Service, said he discussed an offshore gambling operation with an associate linked to Gen Noriega of Panama and General Pinochet of Chile.
The court heard of Mr Rupert's plan to create a "high speed hovercraft service to and from an offshore gambling boat."
Mr Rupert said he had been put in touch with a man with contacts to Gen Noriega who would be able to supply a Bank of Panama branch for the boat.
Under questioning from Mr Hugh Hartnett SC, defence counsel for Mr McKevitt, Mr Rupert said the plan was eventually abandoned due to lack of funds.
Mr Rupert was asked by Mr Hartnett whether he referred to one of those involved in planning the offshore gambling operation as a "mob lieutenant."
The witness replied: "I may have used the term 'mob lieutenant,' but I did not know him as a 'mob lieutenant'."
Mr Rupert did agree with Mr Hartnett that project would utilise the vast amounts of "black money" in Florida at the time but claimed the operation would be legal.
"It was a hypothetical business which would have been operated legally," Mr Rupert added. "It never got beyond an idea and a few discussions."
"Black money," according to the witness, referred to ill-gotten income or income generated through illegal activity which may include tax evasion.
The court heard that Mr Rupert considered the offshore gambling boat while "licking his wounds" in Florida after losing his businesses in Messina, New York, due to bankruptcy and "catastrophic business" circumstances in 1985.
However, Mr Hartnett suggested to the witeness that there "seems to be a very big problem with your memory," before asking at one point whether Mr Rupert was giving his evidence "from a script". Mr Rupert said "No" he was not and refuted the suggestion that he had a problem with his memory.
Mr Rupert explained that he had left Massena after a payment of $30,000 from the sale of a house was mistakenly sent to him instead of the bank. He invested this sum and was unable to pay it back when requested.
The bank proceeded to seize his assets, Mr Rupert said.
Today is the seventh day of the trial of Mr McKevitt (53) of Blackrock, Co Louth, who has pleaded not guilty to two charges - membership of an unlawful organisation, the IRA, between August 29th, 1999, and March 28th, 2001, and to directing its activities between March 29th, 1999, and October 23rd, 2000.
