'It was an elaborate and successful hoax that completely fooled a determined terrorist'

1 July 2010
Belfast Telegraph

Paul McCaugherty was one of a group of terrorists who were determined to buy arms and explosives to carry out attacks on the security forces, a judge has said.

Convicting McCaugherty of a series of terrorism charges relating to a two-year MI5 sting operation, Mr Justice Hart said there was "extremely compelling" evidence against him.

McCaugherty (43), from Beech Court in Lurgan, had denied a total of seven charges.

These included two of conspiring to obtain arms and explosives, Real IRA membership, three of using money for the purposes of terrorism and one of making a restaurant in Alvor, Portugal available for use by terrorists.

His co-accused, 41-year-old Dermot Declan Gregory -- also known as Michael Dermot -- from Concession Road in Crossmaglen, was also convicted on that count.

The no-jury trial heard how McCaugherty had been duped in a series of meetings across Europe with an MI5 agent known as 'Ali'. He believed he was buying an arsenal of weapons -- but the terror cache never existed.

"It was an elaborate and successful hoax that completely fooled McCaugherty into thinking Ali was a genuine arms dealer," Mr Justice Hart said.

The judge added: "He was one of a group of terrorists determined to buy arms and explosives to carry out attacks on members of the security forces in Northern Ireland."

He rejected defence claims that McCaugherty had been entrapped and said he would have pursued the same course of action if he had in fact been dealing with a real arms dealer.

Mr Justice Hart said he was satisfied McCaugherty did not give evidence as "the case against the defendant on each of the counts is an extremely compelling one and that the only sensible explanation not to do so is because he has no answer to give to that case".

Turning to Gregory, who was convicted of making the Portuguese restaurant available, he said "there is no evidence that he was compelled to do it".

Both men will be sentenced in the autumn.

Northern Ireland Secretary Owen Paterson last night welcomed the court verdict.

"It represents a significant setback to those regressive elements that seek to drag Northern Ireland back to the past," he said.

"Our policing and security agencies will continue to oppose those elements with all means at their disposal."