Cork couple sentenced for role in scheme with convicted money launderer

by Rachel Morgan News Editor

A former accountant has been jailed for his role in a money-laundering scheme that involved nearly €290,000, including funds from a Canadian medical cannabis company. His partner also received a suspended sentence after pleading guilty to failing to disclose information to gardaí.

Cyril Keegan, 54, appeared before the Dublin Circuit Criminal Court, where it was heard that he acted as a “conduit” for convicted money launderer Simon Gold. Keegan helped Gold defraud various injured parties between 2017 and 2018.

The court heard that Keegan’s bank account received just over €180,000 from a Canadian medical cannabis start-up. The company’s CEO believed the funds would be used to secure $85 million in funding, but the money was quickly dispersed once it reached Keegan’s account.

Financial Breakdown and Investigation

Further investigations revealed that Keegan made eight separate payments totaling just under €80,000 to Simon Gold’s account from other injured parties. He credited the account of his partner, Ruth Kennedy, with €26,175.

From Instagram — related to Simon Gold, Ruth Kennedy

Jane McGowan BL, prosecuting, stated that Keegan pleaded guilty to three counts of money laundering. The total sum involved in these transactions amounted to €288,650.

Ruth Kennedy, 55, pleaded guilty to one count of failing to disclose information to gardaí on July 26, 2021, under Section 19 of the Criminal Justice Act 2011. During interviews, Kennedy was unable to account for the €26,000 that had entered her account.

Did You Know? The CEO of the Canadian medical cannabis start-up involved in the scheme believed the €180,000 sent to Keegan’s account would help secure $85 million in funding.

Personal Background and Sentencing

Detective Garda Sean Sheehan of the Garda National Economic Crime Bureau noted that Keegan’s accounting career ended following health issues caused by a car accident in the early 2000s. Keegan described Gold as a business associate, and gardaí later uncovered messages and emails between the two men.

Defense counsel Eoghan Cole SC stated that the couple, who reside at Old Mill, Browns Mill, Co Cork, used the money to pay bills and their mortgage. The court heard they had no lavish lifestyle or trappings of wealth; Keegan currently works as a tour guide and is studying for a masters.

Kennedy previously ran a coffee shop in Cork that closed in 2015. Neither member of the couple had previous convictions prior to these proceedings.

Expert Insight: The use of a “conduit” account is a common tactic in fraud schemes to distance the primary perpetrator from the source of the funds. In this case, the transition of a professional accountant into such a role highlights the significant legal risks associated with allowing personal accounts to be used for “business associates” without due diligence.

Court Ruling

Judge Martin Nolan stated that Keegan “must have known he was involved in this fraudulent behaviour” and that he must have known parties were being defrauded. The judge noted that victim impact statements showed the injured parties suffered great distress.

Keegan received a headline sentence of six years, which was reduced to three years and nine months due to mitigating factors. Kennedy was given a two-year sentence, which the judge suspended in full, noting she was unlikely to re-offend despite her lack of cooperation with the investigation.

The court also referenced Simon Gold, 61, who was jailed for seven-and-a-half years in 2019 for laundering €1.6 million. Gold was later sentenced again for dishonestly opening two bank accounts after his release from prison.

Depending on the legal process, the injured parties may seek further avenues for recovery, though the primary criminal penalties have now been delivered. Future cases involving similar conduit structures may likely see continued scrutiny from the Garda National Economic Crime Bureau.

Frequently Asked Questions

What was Cyril Keegan’s role in the scheme?
Keegan acted as a “conduit” for Simon Gold, using his bank account to receive and disperse funds from defrauded parties, including a Canadian medical cannabis company.

What happened to the money from the Canadian company?
Just over €180,000 was sent to Keegan’s account by a CEO who believed it would secure $85 million in funding; the court heard the money was quickly dispersed after landing in the account.

What were the final sentences for the couple?
Cyril Keegan was jailed for three years and nine months, while Ruth Kennedy received a fully suspended two-year sentence.

Do you believe suspended sentences are appropriate for those who fail to disclose financial information during criminal investigations?

You may also like

Leave a Comment