Executive ordered to repay monies to liquidated security firm

The High Court has ordered James Farrell, chief operations officer of a liquidated security firm, to repay €62,000 to Business Mobile Security Services Ltd. Mr Justice Tony O'Connor ruled on Friday that payments made to Mr Farrell in the weeks before the company entered liquidation last July constituted an unfair preference under the Companies Act 2014 and must be returned forthwith. The liquidator, Joe Walsh, discovered the transfers during investigations into the firm's affairs. Mr Farrell claimed the monies were loans from third parties used to support the company during financial difficulties, but Mr Walsh found insufficient documentary evidence to support this account. The judge was satisfied the payments were invalid. Senaca, the operating subsidiary, was wound up due to cash flow problems. The liquidator has identified a deficit of approximately €1.8 million in the client account, with significant sums owed to the Revenue Commissioners and various clients including charities. A criminal investigation into the company's affairs is also underway.