Businessman asked if he was 'a little too trusting' in fraud case

Ian Coulter (left) and Frank Cushnahan (right) have denied the charges against them

A businessman expressed his surprise in court on Tuesday that a lawyer may have lied to him about a deal concerning the National Asset Management Agency (Nama).

He was giving evidence in a case linked to Nama and its efforts to sell its Northern Ireland loan book in 2013.

Ian Coulter, former managing partner at the Belfast law firm Tughans, denies five charges including fraud and transferring criminal property.

Belfast businessman Frank Cushnahan, who used to be an adviser to Nama, is also on trial, accused of fraud. He too denies the charges against him.

James Gilbert, who used to work in the London office of the American investment firm Pimco, was cross-examined by Mr Coulter's barrister Greg Berry KC as he spent a second day in the witness box at Belfast Crown Court.

Mr Gilbert confirmed the first mention of a success fee - which was to be split three ways between the Brown Rudnick law firm, Tughans law firm and Frank Cushnahan - was raised to him by Tuvi Keinan, from Brown Rudnick, in the car park of Stormont.

He also confirmed Mr Coulter and Mr Cushnahan were not present.

Mr Berry asked Mr Gilbert if he was aware in May 2013 that a second investment company, Baupost, was also interested in the deal.

Mr Gilbert said he was aware of this, and when asked if Mr Keinan told him that Baupost had agreed the €16m success fee and that if Pimco didn't agree to that success fee then the deal could go to Baupost, the witness replied "correct".

Mr Berry suggested this was a "warning shot" from Mr Keinan who was effectively telling him that Pimco "better agree" to it otherwise the deal was going to go to Baupost.

When asked by Mr Berry "you obviously believed that?", Mr Gilbert replied "well if you can't trust a lawyer, who can you trust".

Frank Cushnahan outside court on 1 October

The barrister then told Mr Gilbert "the jury will hear in due course from Baupost and no such fee was agreed", adding that Mr Keinan "wasn't mistaken" but had lied.

Mr Berry then suggested to Mr Gilbert that if Baupost did not agree to a €16m success fee, the lawyer "lied to you, he's played you to get the fee".

Mr Gilbert said: "If it's accurate that Baupost never agreed to pay that fee, then we were mislead."

Mr Berry then said "on the subject of lies, did Tuvi tell you Nama were not yet aware of the success fee but they would be pleased that Frank and Ian were going to be involved in the deal?", to which he replied "absolutely".

Ian Coulter outside court in September

The barrister then suggested that this was another lie told by Mr Keinan, as was his "bare-faced lie" that the Northern Ireland Executive was "already aware" of Mr Coulter and Mr Cushnahan's roles as brokers in the deal and that they would be "remunerated".

Mr Gilbert said at the relevant time he "absolutely" trusted Mr Keinan.

He was also questioned about an email exchange he had with Mr Keinan in which he called Mr Coulter "greedy" after being told by Mr Keinan that Mr Coulter had complained that the success fee was in euros rather than sterling.

Mr Gilbert agreed there was no evidence that Mr Coulter had any input into the email sent to him by Mr Keinan, which prompted Mr Berry to suggest that Mr Keinan was "at his usual games, mixing it up".

When asked if he was "a little too trusting of him, given what you know now", Mr Gilbert said "hindsight is a wonderful thing".

He continued: "At the time we were being advised by a senior partner in a very well reputed US law firm so I would say it was reasonable to trust this individual" and added "it is a big surprise if it appears that he wasn't being truthful with us".

The trial, which began in September, is being held before judge Madam Justice McBride.