Group met as tribunal was set to learn of UK deal

Mr Denis O'Brien's former accountant met Mr Michael Lowry in a Dublin hotel in March when it emerged the Moriarty tribunal was to be told about a UK property deal.

Present at the meeting at the Regency Hotel, Dublin, were: Mr Lowry; Mr Lowry's accountant, Mr Denis O'Connor; Mr O'Brien's former accountant, Mr Aidan Phelan; a UK solicitor, Mr Christopher Vaughan; and Mr Phelan's business partner, Ms Helen Malone.

A second meeting held around the same time in Mr Phelan's office was attended by Mr Phelan, Mr Lowry, Mr Vaughan and perhaps Ms Malone.

Mr Phelan told Mr John Coughlan SC, for the tribunal, that it was his understanding from Mr Vaughan that the solicitor was not prepared to assist the tribunal. Mr Vaughan worked for Mr Phelan and Mr Lowry at different stages in relation to a property transaction in Cheadle involving £420,000 sterling.

Investec Bank, which lent the money for the deal, contacted the tribunal after it learned Mr Lowry was connected with a loan which it had been earlier told was backed by Mr O'Brien. Mr Phelan said the meeting in the hotel was held primarily to tell Mr Lowry's accountant about the Cheadle deal. Mr O'Connor wanted to know why the whole thing had "exploded" and become a matter for the tribunal.

Up to this Mr O'Connor had not known about Mr Lowry's involvement in the Cheadle deal, Mr Phelan said. Mr O'Connor "wasn't happy", he said.

He said he took no notes at the meeting. Mr Vaughan was in attendance "to give factual information".

The meeting held in his office was to explain to Mr Lowry how he had come to be involved in the bank's approach to the tribunal. Mr Phelan said he explained that the bank believed Mr Lowry's involvement had been hidden from it and also that Mr O'Brien was involved.

Mr Phelan also said Mr Lowry "was very unhappy". Mr Phelan said neither he nor Mr Vaughan took any notes at the meeting.

The tribunal saw a letter from Mr Phelan to Mr Lowry stating that Mr Vaughan has been instructed to hold the Cheadle property in Mr Phelan's name. Mr Coughlan pointed out that he, Mr Phelan, had instructed Mr Vaughan at a time when Mr Vaughan was allegedly acting as solicitor to Mr Lowry. How could any solicitor accept instructions from someone who was not his client? asked Mr Coughlan.

"That's a good question," said Mr Phelan. "I suppose he knew the situation. I suppose he knew Michael Lowry couldn't stand behind the loan."

Mr Coughlan noted that some of the letters from Mr Vaughan did not bear the type of references one would normally expect to see on a solicitor's letter.

Mr Vaughan stated in a letter to Investec's solicitors that he was holding the Cheadle property in trust but did not have the deeds of trust. Mr Coughlan asked if there was ever a trust deed. Mr Phelan said he had never seen or heard anything about any deeds. He continues his evidence today.