A man has appeared in court charged in connection with a fraud and blackmail case in which a Letterkenny man was conned out of 13,300 euro.

Matthew Joseph McDonagh (28), from Hudson Heights, Irvinestown, appeared before Strabane Magistrates Court last Thursday facing a total of eight charges. These include blackmail, threats to kill, transfer of criminal property, possessing criminal property and obtaining cash from a victim by use of threats capable of encouraging or assisting the commission of blackmail.

The offences were allegedly committed on dates between December 1, last year and January 25, this year.

McDonagh also faces other charges on January 25 of driving while disqualified and using a motor vehicle without insurance and possession of the Class B drug cannabis on March 6.

A PSNI detective constable said he could connect the defendant to the charges and opposed a bail application. He told the court that on November 30, 2018, plant machinery valued at 10,000 euro - a trailer and rock hammer - had been stolen in Malahide, Co Dublin. The owner subsequently posted on social media advertising a reward for the return of items.

The following day he received a call from a male stating that he had located the stolen items. A number of calls ensued and during one conversation the male caller claimed to have connections with the Hutch crime gang in Dublin and a figure of 3,300 euro was agreed for the recovery of the machinery.

The victim was instructed to go to the graveyard on the Killyclappy Road, Ederney, and leave the money “on the left pillar”. He did this and whilst travelling home he received another call from the same male to say that his property would be returned. Later that day in a further call the man requested more money “this time with menaces”, the officer said. The caller, who identified himself as ‘Jim’, said he had “men to pay” and that he needed a further 10,000 euro. On December 3 the victim drove to the same graveyard to drop-off the money. Receipt of the money was confirmed via the same phone number used previously and this time the male claimed that he was in the IRA.

A third request for 30,000 euro “for everything to stop” was made but the injured party blocked the number. He then began receiving a number of voicemails from a private number threatening his life. On December 7, a message from another number read: “You’re playing with fire. I’ll see you face to face shortly and if you’re not about, we’ll see your wife.”

The injured party reported the matter to police on the following day. He heard nothing from the man until January this year when he received a further six calls from a third number asking him to make contact referencing the previous exchange of cash.

Fearing that more money would be extorted, he terminated the call and made another report to police.

A check of the victim’s phone records disclosed that the numbers used were registered as ‘pay as you go’ mobiles however subsequent top-up inquiries linked them back to McDonagh and members of his family. CCTV of several top-ups in the Irvinestown area of the last number used identified the accused. In the footage obtained from a filling station, the defendant was observed driving a Mitsubishi Outlander onto the forecourt despite being a disqualified driver and being uninsured. During a search of his home on March 6, a quantity of cannabis was found.

During interview, McDonagh admitted the drugs and motoring offences however he denied any knowledge of the blackmail and said he did not know the victim.

He further denied purchasing a top-up for the phone linked to the threatening calls or instructing anyone else to do so. He also denied knowing anyone called Jim.

Outlining his objections to bail, the police officer said the suspect had been in contact with the victim over a two month period when “a number of threats” were made.

“The suspect alleged that he had paramilitary connections...Police submit that if he is released on bail there is a real risk of further contact being made again and that he may intimidate the witness into withdrawing his evidence.

“He has 53 previous offences, several of which are for fraud and theft offences. There is also a large amount of driving offences. In January 2018, he was convicted of three counts of fraud by false representation and received a three-year suspended sentence. Within this same year, police now believe he has committed similar offences on this victim.”

He had “little confidence” McDonagh would abide by any bail conditions and feared he would obstruct the course of justice.

“The location of the cash handed over is unknown. It has not been recovered despite numerous searches by police. If admitted to bail, he (McDonagh) could easily thwart the police investigation and dispose of potential evidence and criminal gains in an attempt to prevent police from recovering full assets and vital evidence.”

The officer added that mobile phones seized as part of the investigation are currently being triaged and that the victim had never received his stolen property.

Defence solicitor, Tommy Owens, said his client had been “very co-operative” during his interview with police and that he had no previous breaches of bail. He said the father of one maintained he was innocent of all the offences with the exception of the motoring charges and possession of the Class B.

District judge, Michael Ranaghan, described the alleged offences before the court as of “a most sinister and serious nature”.

“For a man of his age, his criminal record is lengthy, and I note there have been no breaches of bail previously. However, in this case, I have no doubt that he is not a suitable candidate for bail at present. It is something he can raise again with the High Court if he appeals by decision not to allow him to bail.”

Bail was refused on the grounds of a “real risk of re-offending, a risk of interference with witnesses and perhaps a risk of interference with public justice”.

McDonagh was remanded in custody until Monday, April 1, when he will appear at Fermanagh Magistrates Court.