Hearing told no logical explanation for 'false journals' in accountsThe Irish Times - Friday, November 23, 2012

An auditor has told a tribunal he was “appalled” when he realised a fellow accountant was involved in falsifying the accounts of the Irish Coursing Club.

The evidence was heard during an unfair dismissals claim by former company accountant Edmund O’Brien of Newmarket, Co Cork, against the club.

The Employment Appeals Tribunal heard allegations on Wednesday that Mr O’Brien was involved in a “cover-up” while employed by the Irish Coursing Club, allowing former club chief executive, the late Jerry Desmond, spend funds on “holidays and dining and wining”. This led to Mr O’Brien’s dismissal.

Yesterday, Ian Ronan of auditors Glavin and Ronan said his company was engaged by the Irish Coursing Club to audit their accounts in 2008.

They found that, for the 2008 accounts, a number of journal entries were made by Mr O’Brien to change the figures.

When the auditors removed the “false journals”, for which they could find “no logical explanation”, general expenses came to €124,083, of which flights and accommodation and entertainment accounted for €45,506. One example involved €70,000 being “removed” from the miscellaneous section and, of that, €36,000 being entered for “grants to [coursing] clubs”.

Mr O’Brien told the auditors the journal entries were made “for commercial reasons at the request of Jerry Desmond”.

Mr Ronan said he asked Mr O’Brien what the “commercial reasons” for changing the accounts were but got no answer.

He told the hearing the practices amounted to “false accounting, to write into the books and records of a company false information”.

Under cross-examination by solicitor Frank Nyhan, for Mr O’Brien, he said his company reported Mr O’Brien and Mr Desmond to the Office of the Director of Corporate Enforcement but no action was taken against either.

The hearing has been adjourned until February 26th.

By Conor Kane

Auditor ‘appalled’ at falsifying of ICC accountsIrish Examiner, November 23, 2012

An auditor has told a tribunal how he was "appalled" when he realised that a fellow accountant was involved in falsifying the accounts of the Irish Coursing Club.

The evidence was heard during an unfair dismissals claim taken by former ICC accountant Edmund O’Brien, of Newmarket in Co Cork, against the club.

The Employment Appeals Tribunal heard allegations on Wednesday that Mr O’Brien was involved in a "cover-up" while employed by the Irish Coursing Club, allowing former club chief executive, the late Jerry Desmond, spend funds on "holidays and dining and wining". This led to Mr O’Brien’s dismissal.

Yesterday, Ian Ronan of auditors Glavin and Ronan said his company were engaged by the ICC to audit their accounts in 2008.

They found that, for the 2008 accounts, a number of journal entries were made by Mr O’Brien to change the figures.

When the auditors removed the "false journals," for which they could find "no logical explanation," general expenses came to €124,083, of which flights and accommodation and entertainment accounted for €45,506.

One example involved €70,000 being "removed" from the miscellaneous section and, of that, €36,000 being entered for "grants to [coursing] clubs".

Mr O’Brien told the auditors the journal entries were made "for commercial reasons, at the request of Jerry Desmond".

The accounts were made to "look correct" at the club’s AGM by having the same bottom line, but details within them were changed.

Mr Ronan said he asked Mr O’Brien what the "commercial reasons" for changing the accounts were, but that he got no answer.

He told the hearing the practices amounted to "false accounting, to write into the books and records of a company, false information".

An effect of this was to prevent ordinary members of the club from knowing everything that was being spent. "It probably prevents anyone asking a question. In my eyes, it was to make the accounts look consistent, to prevent people asking questions."

Asked how he felt about another accountant engaging in such practices, Mr Ronan said: "As a professional I would be appalled to see another professional carrying out such journals."

Under cross-examination by solicitor Frank Nyhan, for Mr O’Brien, the witness said his company reported Mr O’Brien and Mr Desmond to the Office of the Director of Corporate Enforcement but no action was taken against either.

The hearing has been adjourned until Feb 26.

By Conor Kane

Accountant dismissed over coursing club spendingThe Irish Times, November 22, 2012

An accountant with the Irish Coursing Club was fired for involvement in a “cover-up” that allowed a former chief executive spend funds on his “personal lifestyle”, the Employment Appeals Tribunal has heard.

Edmund O’Brien of Newmarket, Co Cork, has taken a case against the Clonmel, Co Tipperary-based Irish Coursing Club in relation to his dismissal in January 2010.

In evidence yesterday, club president Brian Divilly said an internal investigation found the club’s books had been “manipulated” and the club had lost up to “a million pounds”.

Mr O’Brien was suspended in September 2009 after he was arrested by gardaí as part of an investigation into the club’s accounts. It was later found he had no Garda case to answer.

He was dismissed the following January because he had “falsified the accounts”, Mr Divilly said yesterday.

“There was over one hundred thousand a year for club funds being wasted on junkets. He, as an accountant, was put in there as the accountant to keep an eye on our affairs . . . There was something going wrong. Obviously Mr O’Brien knew there was something going wrong and he facilitated the cover-up.”

An example of this was that the accounts showed €60,000 more for insurance costs than was spent on an annual basis, he said. “He was misrepresenting our books.” This went on for at least eight years.

During the internal investigation they realised the books were being “manipulated”, Mr Divilly said. “There were items put down to cover expenses by the secretary for his own personal lifestyle.”

Former secretary and chief executive of the ICC Jerry Desmond has since died. The Garda became involved in 2008 when Mr Desmond “wasn’t prepared to answer a lot of our questions”, Mr Divilly said.

Asked by Mr O’Brien’s solicitor, Frank Nyhan, what his client was alleged to have done wrong, Mr Divilly said: “He was recommended for dismissal because he told us he had falsified accounts at the request of Jerry Desmond.”

Money was being spent on “holidays and dining and wining and memberships and so on”, Mr Divilly said. “There was €100,000 buried into more costs for insurance and more costs for grants for [coursing] clubs that the clubs never got.”

He said the money was “robbed, squandered, whatever way you want to put it” and Mr O’Brien “knew that Jerry was overspending”. “On one occasion he gave me three years’ expenses on Jerry’s credit card and he said there were no receipts. He said Jerry was very bad at keeping receipts.”

The case continues today.

By Conor Kane

Coursing club man 'hid' fraud Irish Sun, 22nd November 2012

An accountant cooked the books to hide the lavish spending of a former Irish Coursing Club chief, it was claimed yesterday.

The Employment Appeals Tribunal heard how Edmund O' Brien of Newmarket, Co. Cork was fired in 2010 after an internal probe found the club has lost up to ' a million pounds.'

It was alleged that ICC boss at the time, the late Jerry Desmond, has spent the funds on "holidays and dining and wining."

Current club president Brian Divilly said O' Brien-who has previously been found to have no garda case to answer-falsified the accounts for at least eight years.

The wrongful dismissal case taken by Mr. O' Brien continues today.

Accountant appeals dismissal from clubIrish Independent, November 22 2012

An accountant with the Irish Coursing Club was fired for being involved in a "cover-up" which allowed a former club CEO to spend funds on his own "personal lifestyle", an Employment Appeals Tribunal has heard.

Edmund O'Brien, of Newmarket, Co Cork, has taken a case against the Clonmel, Co Tipperary-based Irish Coursing Club in relation to his dismissal which occurred in January 2010.

In evidence yesterday, club president Brian Divilly said an internal investigation found the club's books had been "manipulated" and the organisation had lost up to "a million".

Mr O'Brien was suspended in September of 2009 after he was arrested as part of an investigation into the club's accounts.

It was later found he had no garda case to answer.

He was dismissed the following January because he "falsified the accounts", Mr Divilly said. "There was over €100,000 a year for club funds being wasted on junkets. There was something going wrong, obviously Mr O'Brien knew there was something going wrong and he facilitated the cover-up," he claimed.

An example of this was that the accounts were showing €60,000 more for insurance costs than was actually being paid on an annual basis, he said.

"He was misrepresenting our books," Mr Divilly said.

This went on for at least eight years, the tribunal was told.

The former secretary and chief-executive of the ICC, Jerry Desmond (since deceased) was asked on one occasion about a hotel meeting paid for by the club, Mr Divilly said

Mr Desmond responded that it was attended by "12 politicians" and that the purpose of the meeting was to "keep in with the politicians".

The only one Mr Desmond could name at the time was Batt O'Keeffe, a former Fianna Fail government minister.

During the internal investigation they realised the books were being "manipulated", Mr Divilly said.

"There were items put down to cover expenses by the secretary (Mr Desmond) for his own personal lifestyle."

Asked by Edmund O'Brien's solicitor, Frank Nyhan, what his client was alleged to have done wrong, Mr Divilly said: "He was recommended for dismissal because he told us he had falsified accounts at the request of Jerry Desmond."

Money was being spent on "holidays and dining and wining and memberships and so on", Mr Divilly said.

He said the money was "robbed, squandered, whatever way you want to put it", the hearing was told.

The case continues today.

By Conor Kane

Claims Irish Coursing Club lost €1 million due to cover up.Tipp FM, 22 November, 2012

Former ICC accountant takes case to Employment Appeals Tribunal.

An Employment Appeals Tribunal has heard that the Clonmel based Irish Coursing Club lost up to €1 million because of a cover up.

County Cork based accountant Edmund O'Brien has taken a case against the club over his dismissal nearly 3 years ago.

Journalist Conor Kane reports that the President of the Irish Coursing Club Brian Divilly told the tribunal that an internal investigation showed the clubs books had been manipulated to allow a former chief executive spend funds on his “personal lifestyle”.

Edmund O'Brien was initially suspended in September of 2009 and subsequently dismissed in January of 2010 because he had falsified accounts according to Brian Divilly.