Eddie Hobbs replies

We emailed Eddie Hobbs the original draft of the accompanying article and invited his response. We also posed questions to Eddie Hobbs, which were:

• Since you were aware that the monies being transferred by Mr A (we named the individual in our email) was from a bogus non-resident account, in the names of people other than Mr A, how could you not have been aware that what was involved in this was tax fraud? (We acknowledge this account might not necessarily have been a bogus non-resident account used to evade tax but certainly bogus names were used on the account and a bogus foreign address was used.)

• Although at the time an agent assisting in transactions involving tax fraud may not have been acting illegally, how can you justify the facilitation of a crime and the facilitation of tax evasion, given the stance you have taken publicly on such matters? (Eddie Hobbs does not deal with this issue in his response but he said on the record in the course of a telephone conversation that he had not taken a public stand on these issues and it was unfair to suggest he had). (Again, we ackowledge there may not have been tax fraud involved, but there was reason to suspect there could have been.)

• In respect of the transactions involving Mr and Mrs B, again, how can you justify your involvement in transactions that clearly involved tax fraud? (Again, we acknowledge there may not have been tax fraud involved in these particular transactions, but Mr B made a substantial settlement with the Revenue Commissioners last year.)

The following is the response of Eddie Hobbs in full:

The following is my response which I trust you will publish in full on the article proposed which refers to unnamed client files.

Firstly, I have never acted unlawfully and any statement or inference to the contrary is incorrect. Secondly, no charges or prosecutions have ever been brought against me and neither do I expect any. This is also the view of the liquidator who is satisfied with my conduct as a director. The only person who faced criminal charges is Tony Taylor who has served a custodial sentence. You refer to the liquidator's examination of matters raised and will note that the matters examined relate to the tax affairs of individuals and not to employees of the companies. As I have already stated publicly to an article in another newspaper in relation to these matters, I cannot comment on the affairs of any former client publicly, but what I can say with certainty is that I have never done anything unlawful.  

The source of the allegations and the apparent breaches of the Data Protection Act is being made by convicted fraudster, Tony Taylor whose fraudulent activities were unearthed by me in 1996 and who subsequently went into hiding, discovered some years later by a private investigator who reported to me. This information was immediately passed on to the authorities. Taylor was arrested in Eastbourne, and after initially resisting extradition returned to face trial, pleaded guilty and served several years in prison. Since his release Mr Taylor has been circulating these allegations and documentation against me.

Mr Taylor was given access by the liquidator of Taylor Companies to certain files for the purposes of defending himself in civil proceedings arising out of the collapse of the Group. Mr Taylor has been circulating these files for several months to a number of people in the media such as yourself. Not only are Mr Taylor's actions in breach of his professional obligations as a former professional advisor to the individuals in question, and the Data Protection Act, but any allegations made by Mr Taylor against me should be read in light of Mr Taylor's actions and reputation.

In the early 90s, I was Managing Director of a financial planning company called TIPS Ltd (Taylor Integrated Planning Services Ltd). It had two staff and engaged in giving pensions, inheritance tax planning and mortgage advice. It was attached to Taylor Investment Group Ltd (TIG) and did not transact lump sum investments, all of which were transacted by TIG Ltd. Tony Taylor controlled 76 per cent of the shareholding of TIPS Ltd and 100 per cent of the shareholding in TIG Ltd. It is a matter of record that I did not have access to any banking information and could not engage in banking transactions for reasons we now know related to Mr Taylor's need to conceal his activities. All access to banking and even to discussion with the company's accountants was denied to me quite specifically.

The central issue raised relates to the tax affairs of investors who quite legitimately were entitled to invest in collective investment funds whether at home or throughout Europe in line with European Directives on these matters. Banking arrangements made by investors with their banks was a matter between them and in the interim these matters were correctly examined by Revenue. 

Given the sheer scale of monies percolating throughout the economy through all types of firms from solicitors, auctioneers and investment advisors to car salesrooms, it would be unreasonable to expect any person in business at the time to have been immunised from investments and purchases being made by people who may or may not have made correct returns, or may or may not have availed of tax amnesties.

Once again, I can only say that I have never acted unlawfully, no charges or prosecutions have ever been brought against me and I do not expect any. I have always endeavored to take the correct road, particularly in public life and that is a record which I think stands up.

Points of correction:

 1. Section 150 of the Companies Act 1990 does not disbar a director as that would require an order under Section 160. Section 150 instead seeks to restrict a director from acting as a company officer for a period of five years for small companies only, ie with capitalisation of less than €63,500. All liquidators are automatically required to bring such notice for any person still listed as a director within 12 months of a court appointed liquidation. Quite apart from the fact that I have been of considerable assistance to the liquidator, there is understandably been Supreme Court ruling on the matter of delay and justice. We are now entering into the tenth year following the liquidation and I look forward to dealing with this matter through due process and while I do not expect to be restricted, I accept entirely that this is a matter for the courts.

2. I was not an employee or director of Taylor Investment Group Ltd to which you refer. This can be validated by the fact that I will be dealing with the liquidator's S150 application for TIPS Ltd established in 1991 and TAM Ltd which became operational in 1995 only.

Eddie Hobbs, 8 september 2005