There are many documented instances of Solicitors exposure to the property market as developers/ promoters as well as a heavy reliance on conveyance fees, but a very interesting story is unfolding over at Tuskar Asset Management where it would appear that this investment vehicle was a particular favourite of the medical profession.
From last months Phoenix - apologies for the formatting and I can’tlink to the article as it is taken from a pdf.
It would appear as the onion is being peeled gradually we are seeing the full extent of the professionals exposure to the property market, and those who would have been considered to be immune from property and market downturns are implicated by their investments.
The Phoenix
MATER MEDICS IN THE DOCK
MORE TO REPORT on
Tuskar Asset Management plc (TAM), the property investment vehicle set up by Wexford accountant, Alan Hynes. The latest news is that the TAM liquidator, Kevin Hughes of Hughes Blake, is suing four of the company’s shareholders, all medical consultants in Dublin’s Mater Hospital – Declan Sugrue, Ted Keelan, John Hurley and Hugh McCann. Goldhawk understands that Hughes is alleging that the medics owe the company close to €1m. However, the doctors – who are represented by the law firm L.K. Shields & Partners – are contesting the laims and a hearing is due
before the High Court in November. TAM was the holding company for a number of other Tuskar companies, which collapsed into 0liquidation in December 2008,
with liabilities estimated at up to €50m. At the time of its liquidation TAM had 81 shareholders of which at least 10 were either doctors or dentists, including Colm Sugrue – a dentist with a practice at Dublin’s Dorset Street – who is Declan Sugrue’s brother. Declan Sugrue, Ted Keelan and Hugh McCann are
consultant cardiologists, while John Hurley is a consultant cardiothoracic surgeon, and each owns a 2.5% shareholding in TAM. Surgrue is also the president of the Irish Cardiac Society as well as being a board member of the Irish Heart Foundation and a former member of the Medical Council.
In a separate case, the Sugrue brothers and the three other Mater consultants are also listed as defendants in a case taken by Pierse Contracting against a property group called the Tuskar Property Syndicate. Alan Hynes – who is under investigation by the Chartered Accountants Regulatory Board for alleged breaches of the code of ethics of the Institute of Chartered Accountants (see The Phoenix 2/7/10) – is not listed as a defendant in this action although his wife, Noreen Hynes, is.
I am of the opinion that lawyers & politicians will be the last to be hit.
Remember, it is difficult to operate in both sectors after personal bankrupcy has been declared.
By the time it gets to those two, watch for bankrupcy laws to be ‘reformed’.
I would be interested if laughinglawyer agrees with my analysis.
What would the impact of a bankrupt medical hierarchy have on the state?
Maybe it’s time to renegotiate those public - private consultant contrats, they might just be a little bit easier to deal with now!
The property-syndicate for professionals was a boom-time special in Ireland. I have friends in the medical profession in Dublin and it would be been unusual for a consultant not to be involved in some type property speculation.
Can a bankrupt doctor still practice? Would it impact their contract with the health service?
A solicitor who is adjudged bankrupt may not remain in practice. This is irrespective of any wrongdoing or otherwise on his/her part.
A barrister who is adjudged bankrupt may remain in practice - unless there is an element of wrongdoing involved in the bankruptcy which leads to disciplinary action being taken against them.
A doctor who is adjudged bankrupt may continue to treat patients (again, unless some wrongdoing or dishonesty leads to disciplinary action against them). However they may have difficulty in doing so other than as a PAYE employee. As a bankrupt they will be restricted in their ability to manage a company and any partnership they have been part of will generally be automatically dissolved.
That’s why I think this particular case is so interesting, Alan Hynes is all over this and a few other property related failures that are floating around at the moment (see Maguire solicitors fighting for their professional lives on the basis of an undertaking given)
It would appear that the great and the good are about to be outed as broke as well as everyone else - the social impact of this is quite large.
Taken with Breifne O’Ruin , howe many opther Bernie O’ Madoffs are there out there and who else will come tumbling down with them.
What is the risk of having so many senior consultants in the Mater broke!!
NAMA is a vehicle to ensure that the great and the good don’t end up busted. Why do we never hear about borrowers? How can borrower identities be commercially sensitive for busted loans that are in a state-backed vehicle?
The reality is that there are not going to be many bankruptices - generally only where the borrower is acting the bollix. In reality, creditors would generally suffer by the bankruptcy process due to its costs and it is simply not worth it.
Interest only is definitely an acceptable solution at the moment.
Rolls ups of course happen while the problem is being considered, and there is no real rush at the moment as there is no market for the secured assets.
When it comes to a settlement, it really jsut depends on the circumstances of the borrower. Generally banks expect real sacrifice - everything on the table. The ideal outcome is to draw the line under the current borrowings and have either fixed or contingent payments regarding the shortfall. It’s all a balance really.
Tuskar is old hat, Hynes started off ‘selling’ syndicates and went into development himself for bigger fees and commissions.
There is some class of an ‘up to’ €5m exposure syndicate based loosely in every golf club in Ireland that is up to its neck in half a street in Ballyhaunis or some such small scale exposure by 2006 standards… The organisers and their fees are long gone and the debt is a joint and several matter for the local doctor and solicitor and big farmer and of course the bank manager …and will be for many years to come. The very odd one has completed a workout, most are in extend and pretend land to this very day.
AIB finally moved in 2011 against this clown in Clifden but the Pin covered this mess a good few few years before AIB sacked him in 2011 and he was dismissed over a letter he wrote in 2005. A couple of prominent local lads in Clifden decided to buy $60m worth of villas in Florida…as you do…and their local bank manager was not found wanting when they asked for a letter showing they were good for it.
…and will be for many years to come. The very odd one has completed a workout, most are in extend and pretend land to this very day.