The scene unfolds after lunch on Oct 2, 2023 at the business premises of Begbies Traynor accountants, Canary Wharf, situated in London, where embattled Irish property magnate Derek Quinlan (DQ) is in attendance for a pivotal consult in his life.
Engaged in an official dialogue with Jacob Beake (JB), one of his trustees in bankruptcy, he’s under scrutiny that could potentially hinder his discharge from bankruptcy if Beake remains unsatisfied with Quinlan’s responses concerning his financial past. Beake has been investigating Quinlan’s transactions for a duration of eight months.
Accompanying Quinlan is his legal advisor, Chris Keane (CK). The ensuing text presents an abridged recounting of their discussions drawn from the authorized transcript. Quinlan voiced his grievance afterward concerning the highly confidential nature of the discourse and his apprehension of it being leaked to the public.
Quinlan narrates to Beake his stint of six years as a tax inspector prior to establishing himself independently as a chartered accountant in the year 1989. He subsequently ventured into developing property consortia.
DQ: Progress was slow in building the business, exceptionally slow. Over time, the business expanded and became significantly larger. I onboarded my initial partners in 1998, after which the business took off… At the time, Ireland was enjoying a robust economy and our growth naturally followed.
Quinlan further delves into his position at the property finance advisory outfit, Quinlan Private Capital. Questions were posed about his directorial role between 2006 and 2009.
DQ: Primarily, I was the face of the company. We were a sizable business.
JB: Could you clarify your remuneration?
DQ: The exact figure evades my memory, however, it was a hefty sum. It was structured as a partnership.
JB: How was profit sharing divided?
DQ: I held the larger share, though I can’t remember the specifics.
JB: Are you able to remember the amount of profit you received?
DQ: My estimate would be £300,000 (€360,000) on a monthly basis.
Quinlan informed Beake that he had shifted his residence to his property on London’s Fulham Palace Road a year ago. Prior to this, he was staying at Le Patio Palace in Monaco, and before that, at Le Simona. Quinlan stated that his wife, Siobhán Quinlan, took care of the rent in Monaco, which according to Nama, could have been as high as €30,000 per month.
Beake queried about the cost of renting the Fulham Palace Road property, Quinlan responded that it was around £105,000 annually, paid upfront. He also mentioned that his wife took care of the rent payments. When asked if he often visited Monaco, Quinlan stated that he hasn’t been there since his departure. The only overseas place he visits is Ireland.
In response to the query about who takes care of his living expenses, Quinlan mentioned that except for his monthly pension of roughly £3,000, his wife deals with all additional costs. The costs include children’s expenses and she has helped him with funds, supplemented by informal loans from friends.
Beake later enquired about the source of his wife’s income, to which Quinlan responded that she made quite a sum of money a few years ago, by purchasing and selling property in the south. Upon being asked about the specific property, Quinlan revealed it was Fibonacci Square, located in Dublin 4, which was acquired in the year 2015. The conversation about the source of funds used to procure the property was halted by Quinlan’s lawyer, Chris Keane, who insisted on relevance to Derek’s involvement.
CK: Did you facilitate the financial backing for the property acquisition, Derek?
DQ: Not at all. I was penniless at the time.
Quinlan finds himself answering questions related to €317,000 he was due to receive from Avestus Capital Partners, information he initially neglected to share with his bankruptcy officials.
DQ: It had totally slipped my mind.
JB: How did you get wind of it?
DQ: After going bankrupt, [laughs], a timely reminder informed me about the existing amount, which I’d completely overlooked.
Quinlan then faces inquiries about a statement in his bankruptcy form that states he was providing advisory services on property matters in France from May to July 2022.
DQ: I guided a Norwegian family on the correct channels of buying a property.
JB: What was your financial gain?
DQ: I believe it was £120,000.
JB: Was it with Ultima Management?
DQ: Yes, I am pretty sure that’s who it was.
Quinlan discusses his involvement in Coroin, the foundational company of the Maybourne hotel group. This was a hotbed of a control feud between Paddy McKillen and the Barclay siblings, owners of the Daily Telegraph. Quinlan explains that the Barclay’s Ellerman Corporation took over his Coroin shares and the rest fell into Nama’s possession.
JB: Did Nama have knowledge about your Ellerman deal? Did they endorse it?
DQ: Definitely.
JB: What were the stipulations of the Ellerman deal?
DQ: For a couple of years, the Barclay siblings have been a great help to my family. They have been financially backing our lifestyle.
JB: Was your financial aid from them, a consideration for the charge?
DQ: Well, they required my assistance. They believed that their ability to gain full control was contingent on my support.
Quinlan’s legal counsel elucidates that the Maybourne issue also has ties to an independent, intricate legal tussle over the Santander building in Madrid. Quinlan’s share in the Santander deal also put him at the centre of another power struggle, this one between Robert Tchenguiz and the Reuben siblings. Resulting in Quinlan finding himself wedged between clashing contenders for both the hotel group and the Santander property.
CK suggested that the deal couldn’t be evaluated singularly, indicating a larger narrative where parties were strategically interacting and exerting pressure.
JB enquired about the agreement following the transaction with the Barclay Brothers.
DQ confirmed that while the brothers promised to support the family, it was essentially a self-support situation. My wife and I received funds from them, but in exchange, they assumed control over many of our assets and the associated debt.
Inquiring about the precise assets, the trustees learned from Keane that these included a Tullamore-based shopping centre and an East 64th Street, New York property. Keane asserted these assets were sold “years back” and Quinlan retained no documentation.
When JB queried what had happened with the sales proceeds, DQ admitted they were completely absorbed by the Barclays brothers and he retained none.
In further financial queries, JB learned that DQ received a €500,000 loan from the Barclays brothers in November 2010 for personal necessities and other loans amounting to £1.86 million and an additional €500,000 in 2011 were also directed towards personal expenditure. DQ affirmed that he was not in debt to the Barclays.
On questioning whether these funds were used to purchase any assets, DQ denied such acquisitions. Additionally, DQ stated these loans were granted to his wife rather than himself.
CK deduced the reasoning behind this course of action might have been apprehension about Nama taking hold of everything if it was under DQ’s name. DQ deflected the matter, remarking Nama’s name was indeed on the list.
After a while, Quinlan brought up that the Coroin incident was a long-forgotten matter from eight years ago, difficult to recall in detail. He also revealed his serious health problems that led to intensive care visits and came close to death twice the previous year.
DQ: Stress isn’t at all beneficial for me.
JB: Could we shed some light on Nama? How would you characterise your overall rapport with them?
DQ: I had been thoroughly cooperative with Nama.
JB: And their perception? Were they content that you complied with their requirements?
DQ: I’m not sure, but I fulfilled every request they made. It turns out, I was their largest debtor.
JB: Were there any unresolved assets they pursued as part of the resolution?
DQ: No, everything was disposed of and at the worst possible time.
CK: Including his artwork and everything else.
DQ: It was dreadful. A rather distressing period.
JB: So was it solely Nama’s plan to liquidate all the assets, sort of like a clearance sale?
DQ: Precisely, it was a spectacular real estate clearance sale. I reimbursed them €3.1 billion, indeed.
JB: Were you engaged in any discussions about a settlement with Nama?
DQ: Actually, in 2014 Nama initially said to me, ‘Respond to these five queries and we will release you. We’ll disregard your outstanding debt.’ Despite fulfilling their demands, they then backtracked. In 2015, the authorities initiated an investigation into Ireland’s banking turmoil and, inevitably, I was summoned. There was no avoiding it. Consisting of three long hours in the parliament, and I was told by Nama ‘you are certainly not to utter anything detrimental’, which I adhered to. The politicians were itching for me to criticise, but I never spoke ill of them. In any case, I’d prefer to say – completely truthfully – that Nama holds a grudge against me. They’ve caused me to declare bankruptcy. Needless to say, I hold a grudge against them.
CK: All the other high-profile names have had debts worth millions written off.
DQ: I owed in the hundreds of millions. Not just ten million, but hundreds.
JB: They never even suggested debt forgiveness for you? What could be their rationale?
CK: Because you were the prime target, perhaps?
The original narrative involves Quinlan, who used to be a tax inspector, explaining his complicated tax affairs, and his relationship with the former chairman of Nama/Frank Daly. As per Quinlan’s account, Daly was not pleased with his presence due to his past as a tax inspector, but they never really had a direct communication or any sort of interaction.
In 2018, Quinlan, who hadn’t disclosed a significant detail about a €2.5 million tax rebate he had received, transferred this amount to his wife directly. Upon discovering this from the bank statements, the trustees inquired about the source of the refund. Quinlan explained that it was an overpaid tax refund originating back in 2004 and was delayed until 2018 because his tax issues were intricate.
Further queries about his joint assessment with his wife unveiled the fact that they didn’t have distinct tax returns; rather, they shared the same one. He clarified that such arrangements of joint tax returns were not limited to married couples in Ireland; even cohabiting individuals could file a joint return, incorporating their gains and losses within the same return.
Near the end of the conversation, Quinlan was asked about the number of his Aviva pension policy, but the company was unable to verify the number he had provided to the bankruptcy trustees. He was questioned if he had a liaison at Aviva.
Best of luck. This year, my Aviva account was abruptly halted as a result of my bankruptcy. Barclays promptly closed my account upon discovering this. No one informed me about it. In response, I reached out to Aviva, stating I couldn’t retrieve my finances and needed them transferred to another account. It took about four months before I received payment. Therefore, I wish you all the best. Be aware, whenever you call, an amiable representative based internationally will conversate with you.
Then, inquiries arose about who was in-charge of Quinlan’s legal payments.
DQ: A mate took care of it.
JB: Could you name this mate?
DQ: He’s in New York.
JB: And their assistance was on what grounds?
DQ: Kindness.
JB: What can you tell us about them?
DQ: Must I disclose?
CK: Mind if I provide guidance on this topic? Commercial sensitivity might be involved.
DQ: There might be potential political implications. The individual in question falls under strict regulations in the U.S. He has considerable political influence.
Subsequently, Quinlan was interrogated regarding a series of past property transactions he engaged in and the advisers he had been in association with over the years. Shortly after, the interview concluded.
JB: The time is fifteen minutes past five, I will end the interview here.
Seven weeks post-interview, Beake along with the Official Receiver approached a judge with a request to prolong Quinlan’s bankruptcy discharge due to his lack of meaningful cooperation.