Following discussions involving Mr Kearney, LeBruin and Tony OâConnor, an employee of Davy at the time, it was decided Davy would sell the bonds for a price which would discharge the â¬2.36 million debt to Stapleford and leave a profit to be divided between him, LeBruin and Davy.
The bonds were sold for 20.25 cent in the euro, realising a total price of around â¬5.58 million. The consortium of 16 Davy staff would emerge on the other side of the trade as the buyers of the bonds, which was unknown at the time to Mr Kearney or Davyâs own compliance function.
Mr Kearney claimed in his action that the â¬5.58 million price significantly undervalued the bonds, as he met with an investment banker on the day the deal went through in November 2014 who offered to buy the bonds at 32 cent each. He said that Davy persuaded him that the original deal for 20.25 cent had already been agreed. The developer had an execution-only account with Davy.