Daniel Kinahan facing €9m bill over illegal foray into US boxing as drug empire crumbles

Court papers filed on Friday in California specify for the first time the exact damages sought from Kinahan and MTK, after the drug lord and now-defunct boxing agency failed to contest allegations they abused the sport to launder cartel drug cash.

Attorney fees of an additional $513,154.19 (€473,000) are also sought to pay the legal costs of US boxing promoter Moses Heredia’s lawyers.

The massive bill is being presented to the sanctioned mob boss at a time when he and his drugs cartel are under attack on several fronts.

Not only is Kinahan trapped in Dubai as a result of the US sanctions imposed two years ago, the appointment of Simon Harris as Fine Gael leader on a law and order platform has increased hope among gardaí that political pressure will be ramped up to secure his extradition back to Ireland.

Obvious signs of the crumbling nature of the cartel’s once all-powerful empire could be seen at Kinahan’s former mansion at Coldwater Lakes in CityWest this week.

The luxury five-bedroom property, seized by the Criminal Assets Bureau (CAB) from Kinahan in November 2022, is now in danger of becoming completely overgrown.

Pictures taken by the Sunday World show how even the locks placed on the front gates by CAB are rusted over, while light fittings are broken and weeds are growing up through the brick driveway.

The High Court previously heard that the house has been “effectively owned” by Daniel Kinahan since 2014 after Jim Mansfield Junior handed over the home to repay money he owed when a deal to invest in property for the cartel fell through.

The court also heard that the house was valued at between €750k and 800K in 2013.

In 21 pages of documents filed before the US District Court in California on Friday, lawyers for Heredia — who took the high-profile cases against Kinahan over a claim his fighter Joseph Diaz was illegally poached by MTK using drug money — break down the overall $10.7M (€9.8m) damages.

They also allege that lies spread against him by MTK cost the Heredia operation the chance to sign ‘three to five’ other boxers, including World Champ boxer Terence Crawford.

The papers reveal Moses Heredia is claiming lost earnings of US $1,327,500.00 (€1.2m) as a result of the loss of Diaz alone.

“As of January 30, 2020, Heredia and his prize boxer, Mr Diaz, had just won the World Title,” the papers state.

“This achievement represented years of investment on the part of Heredia, and both he and Mr Diaz were poised to capitalise on the championship victory.

“Specifically, Mr Heredia expected to receive a higher amount of income from bouts, since Mr Diaz, now champion, would command higher rates per fight, which by extension would increase Mr Heredia’s per-fight income.

“Mr Heredia had also rightfully earned a prestigious reputation, given his herculean accomplishment of having raised a fighter from cradle to champion, an almost unheard-of feat in the world of boxing. Based on this hard-earned enhanced status, Mr Heredia was poised to take advantage of increased professional and business opportunities.”

Instead of this happening, the papers say, after Kinahan and MTK illegally poached Diaz, a defamatory whispering campaign was initiated against Mr Heredia.

Kinahan and MTK “acting with deliberate intent, have disseminated defamatory statements within the boxing community,” the papers state.

“False, yet widely pushed, allegations that the Heredias were stealing from their fighters’ proceeds created further suspicion. The result is that the Heredias were rendered unapproachable …

“Prior to the defamatory statements, the Heredias were at the pinnacle of their management profession having guided an amateur fighter into a world champion.

“Yet, due to the false allegations, the Heredias lost out on signing (conservatively) a minimum of 3-5 high calibre, new fighters …

“Given the kinds of talent that the Heredias were attracting, each candidate had a chance of breaking through, and thereby earning higher purses and lucrative bouts.

“Specific evidence of the conservative nature of the estimate is in the astounding recent success of Terence Crawford. Mr Crawford was an up-and-coming talent who was in discussions to join HBM’s stable following Mr Diaz’s title victory in January 2020.

“Due to the false information circulated by defendants, Crawford instead signed with MTK.

“He is currently the number one welterweight in the world.

“Mr Crawford recently earned approximately US $10,000,000 (€9.2 m) for one fight. This one fight alone would have generated US $1,800,000 (€1.6m) in management fees.

“It can be reasonably projected that the Plaintiff would have earned a minimum of US $540,000 (€497k) in profits by signing at least three additional boxers.

“When accounting for the breakthrough success of any given prospect, the number could have been far higher, including at least $1,800,000 (€1.6m) for managing Mr. Crawford, plus an additional $720,000 for four other prospective clients, for a higher estimate of $2,520,000 (€2.3m).”

Mr Heredia’s lawyers are also seeking further damages for ‘emotional harm’ as they say “instead of reaching new heights”, Mr Heredia and his brother “were deprived of the opportunity to grow their stable with top prospects, and were forced to fight for their reputation against malicious rumours.”

The damages being sought against Kinahan are trebled as the case has been filed under the RICO statute, which provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organisation.

Prosecutors in the 1970s used it to prosecute the Mafia as well as others who were actively engaged in organised crime.

In later years, prosecutors have applied the law more broadly and used it to prosecute civil cases such as the one against Kinahan.

Concluding the application for damages, Heredia lawyer summarised: Mr Heredia has suffered $360,000 (€330,000) in contractually obligated income, $1,350,000 (€1.24m) in lost income from high-profile fights, $1,327,500 (€1.22m) in lost future contract income, and $540,000 (€500,000) in lost income from adding new boxer clients, as well as an indeterminate amount in other emotional damages, for a minimum total of $3,577,500 (€3.3m) in damages.

“In accordance with RICO, the Plaintiff is entitled to treble damages. As such, Mr Heredia is entitled to a minimum recovery of $10,732,500 (€9.8 million).”

Judgement on the application is expected to follow within a matter of weeks.