Livingston woes cost Keane home

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A former Livingston FC director fought back tears as he told his fraud trial how the club's financial woes cost him his home and left him bankrupt.

Dominic Keane, 56, was giving evidence in the witness box during his trial. He denies carrying out a £2.3m fraud.

He said a letter in which he accepted blame for the club's financial mess was "not true".

Mr Keane insisted he was told to accept blame by business partner William Haughey.

Frequently appearing close to tears and taking sips of water to compose himself, Mr Keane described Livingston's meteoric rise to the Scottish Premier League and a place in European football.

I just wanted peace. That is all I wanted Dominic Keane

He also told the High Court in Edinburgh how, off the pitch, the club had developed a stadium which involved constructing conference and banqueting facilities and a nightclub.

The trial has heard how it all collapsed in 2004 with the club being taken into administration with debts of £3.5m.

Mr Keane, who is also a former Celtic director, described how it triggered his own downfall, leaving him bankrupt and losing his home.

He is accused of using documents bearing the forged signature of multi-millionaire Glasgow businessman Mr Haughey, 53, to persuade lottery winner John McGuinness, 45, to sign papers which were used to persuade the Royal Bank of Scotland to turn an overdraft into a loan - and give the Livingston backers five years to pay it off.

The trial has also seen a supposed "confession" in which Mr Keane states that Mr Haughey had not in fact signed the bank papers.

Solicitor advocate Maurice Smyth, defending, asked Mr Keane about the letter, written in January 2005, when the Royal Bank of Scotland was demanding its money back.

Mr Keane said he did write the letter, because a furious Mr Haughey demanded it, adding: "I wasn't well, but that is no excuse."

Made bankrupt

After a long silence he wiped away tears and told the trial: "I had had enough of it. I had worked for six years for nothing. I had lost my house, my reputation and he was standing there shouting and bawling.

"I just wanted to get it over. I did write the letter, I assure you I wrote this letter. Why did I write it? I just wanted peace. That is all I wanted."

He said he knew he would be the first person the bank came after. He did not contest their civil action and was made bankrupt as a result.

Mr Keane agreed with Mr Smyth that the letter was to offer Mr Haughey "maximum protection".

"But is it true?" asked the lawyer.

Mr Keane told him: "No. It cannot be. It cannot be true. We were partners since the day we started in it, signed up for the loan. How could it possibly be true?"

The charges state that on 14 April 2001 in Larkhall and elsewhere, Mr Keane pretended to Mr McGuinness that Mr Haughey signed two loan agreements to refinance £2m over five years.

Mr Keane is accused of knowing that the signatures on the agreements were forged to fraudulently obtain the deal which left his two partners liable.

The trial continues.