Football chief 'said sorry over loan scam'

Published on Thursday 20 August 2009 22:01

THE former chairman of Livingston Football Club confessed in a letter that he had used the name of a wealthy businessman to get a bank loan, a fraud trial jury was told yesterday.

Dominic Keane had written to Willie Haughey to apologise and set out "the truth", the court heard, but it had still cost Mr Haughey more than 1 million to settle an action when the Royal Bank of Scotland sued him over non-payment of the loan.

Mr Haughey, a prominent west of Scotland businessman and former director of Celtic, told the High Court in Edinburgh that, although his name appeared on documents submitted to the bank in 1999, he had known nothing about the 1.75m loan to build a new stand at Livingston's Almondvale Stadium.

He said Keane visited him at home in January 2005 to say he was to have a meeting with the bank, and produced paperwork.

"I said, 'What loan?'. He showed me a document. I said, 'This is absolutely not true… this is a scam. You have two minutes to tell me what this is about or I'm phoning the police'. He explained he had applied or inquired about a loan to develop the stadium and had been informed it would be refused, and the bank had given him the idea that maybe a partnership applying would be the best way forward. It would be acceptable," Mr Haughey, 53, told the court.

"He told me he had got the money but things had not worked out. He was meeting the bank the next day. I told him I wanted this in writing. Dominic produced the letter the next day. He came to my house and handed it through the gate."

Mr Haughey read the letter to the jury. It stated: "I write this letter to you in order others may be aware of the truth… your name added credibility… you were completely unaware of the arrangements and I accept full responsibility for what happened… you did not sign the loan agreement… there was no excuse for setting things up on this basis … I am genuinely sorry for the fact all this has come about … I confirm you have no responsibility at all."

Keane, 54, denies duping Mr Haughey and John McGuinness, a 10m lottery winner, as part of a scheme to obtain money from the bank between 1999 and 2001.

Keane and Mr McGuinness were both directors of Livingston, and Keane was also chairman. The court has heard they wanted to take the team into the Scottish Premier League, but the stadium needed new stands to meet a 10,000-capacity criterion.

Mr Haughey, who had been in business with Keane and Mr McGuinness previously, said he had no intention of putting money into the club.

He confirmed RBS had gone to the civil courts to try to recover from him, Mr McGuinness and Keane money it said it was due under the loan. The action had been settled in the past few months. He had paid the bank just more than 1m.

The advocate-depute, Alastair Brown, asked: "Were you making any admission or concession about having been involved in this loan?"

Mr Haughey said: "Absolutely not." He said the decision to settle had been based on legal advice.

The trial continues.