A Dublin-based pension fund has reportedly claimed dues amounting to €618,834 from the estate of a deceased solicitor from Dún Laoghaire. David Montgomery, aged 54, who was a managing partner at Thomas Montgomery & Son Solicitors (TM&SS), sadly passed away in a tragic drowning incident at Dún Laoghaire harbour in October 2022. The night prior to his demise, he was under investigation by the Law Society.
The deceased’s widow, Ciara McGoldrick, who is the executor of his property, is having a legal tussle with the pension fund backed by the sole business tycoon, Connie Kelleher from Hainault Road, Foxrock, Dublin 18. Other participants include Peter Griffin, a trustee of the Woodfield Pension Trust (WPT) from Sandyford Business Centre, Dublin 18.
Mr Kelleher and Mr Griffin have sought legal rights from Ms Justice Eileen Roberts to appoint attorney Fiachra Baynes as a defendant intending to litigate against the late solicitor’s estate. In the past, Mr Kelleher had a vital role as a finance manager at Bord Iascaigh Mhara, a Dún Laoghaire-based State agency, is of retirement age. However, he can’t retire or avail his pension due to a purported funding deficit, allegedly caused by nonpayment from TM&SS.
According to an expert testimony from accountant Tom Murray of Friel Stafford, there appears to be a deficit of €618,834 in the TM&SS client account that should be held for WPT. Precisely, the pension fund had lent over €3 million to different parties through the law firm and charged interest on these loans. However, it seems that some amount intended for the pension fund was misused for other unrelated assignments.
According to a legal statement, Owen Swaine, who is representing a pension fund at the Swaine Solicitors, suggested that there may be other claimants aside from the applicants against a certain law company. His comments were in light of a media coverage suggesting that the law firm might also be pursued by the Revenue Commissioners in relation to a missing €1.7 million.
A letter dated September 26th addressed to Swaine Solicitors from BHSM, a law firm based in Dublin representing Ms McGoldrick, described the estate of Mr Montgomery as intricate. As of then, Ms McGoldrick was in no position to request grant of probate. The same note indicated that Ms McGoldrick had learnt from the Law Society about claims from Mr Kelleher and she queried whether he had made a claim to the Law Society’s Compensation Fund.
Court representation for Ms McGoldrick was made by Niall Fahy BL, while Eanna Mulloy SC represented Mr Kelleher. The court was informed that the applicants were also seeking damages that aren’t fixed in amount, but rather would be determined by the court.
An expert report by Mr Murray indicated that Mr Kelleher utilised his pension funds to create personal loan notes for separate borrowers, a process handled via the client account of TM&SS, and the loans were secured against properties.
The law firm facilitated six loan transactions on behalf WPT. The transactions associated with these loans amounted to €3.5 million inflow and €3.31 million outflow in the firm’s client account. Mr Murray noted some transactions on the client account had no ties with WPT or Mr Kelleher.
In his report, Mr. Murray pointed out the operation of the client account as informal at the very least, and potentially fraudulent at worst, with possibilities of client funds being used for purposes not intended for or by other clients. He elucidated that the WPT trustees are not willing to retire the pension scheme yet, due to uncertainties and potential financial and tax repercussions that might arise from taking action before these uncertainties are addressed.