REVEALED: The controversial online child safety business that was allowed to use the Garda logo for commercial reasons, its ties to an All Black legend, Hollywood insiders – and how it managed to vex the VATICAN…

GARDA bosses allowed the force’s insignia to be used on a commercial basis for at least three years – the first and only time this occurred in the history of the state.

The use of the insignia by a controversial online child safety tech firm continued until this year, despite gardaí saying they told the company to stop using the endorsement three years ago.

Cybersmarties.com – a social media platform for primary school children – was granted a Garda endorsement in 2020 after several officers recommended the move.

One of those officers – former Det chief superintendent Declan Daly – later worked for Cybersmarties upon retirement in return for a shareholding in the firm.

Gardaí this week suggested that ‘at the time’ the endorsement ‘was considered a crime prevention partnership to protect young people from online harm’.

But the MoS has uncovered evidence that the Garda insignia was being used openly for commercial purposes.

According to An Garda Síochána, its endorsement of Cybersmarties had ceased by October 2022 – something the company claims it was never informed of by gardaí.

But Cybersmarties is not only facing questions about its use of the Garda logo.

An MoS investigation can also reveal the company misrepresented itself as being a ‘global partner’ of UNICEF.

Meanwhile, the just-retired Vatican Bank board president described the company’s claims of its dealings with him as ‘complete lies’.

Furthermore, some of those owed money by Cybersmarties have made a complaint to the Garda National Economic Crime Bureau.

Incorporated in Limerick in 2015, Cybersmarties is the brainchild of former children’s author, Diarmuid Hudner.

The firm markets itself as a safe online space for pre-teens and says its platform was developed ‘with the purpose of eliminating cyberbullying and protecting children’.

After engaging with the Garda National Protective Services Bureau (GNPSB), the firm was endorsed by An Garda Síochána in January 2020 – a first for any social media firm.

At the time of the endorsement, the GNPSB was headed by Declan Daly, who, together with others, recommended the endorsement.

As Bureau chief, Mr Daly was responsible for policing, child abuse, sexual crime, human trafficking, organised prostitution, domestic abuse and the management of sex offenders.

A screenshot of the Cybersmarties website featuring Garda endorsement

Another screenshot of the Cybersmarties commercial website shows how they used the Garda endorsement

Mr Daly was once tipped to be in the running for an Assistant Commissioner position but he retired in October 2021.

The following month, for a token sum of €1, he was allotted one share in Cybersmarties Ltd – the Irish firm that controls the business globally. In February 2022, Mr Daly was announced as head of child safety at Cybersmarties.

Announcing the appointment, Mr Hudner said: ‘We have been working with the National Protective Services Bureau for two years now and we are incredibly grateful to have the support of such a dedicated and forward-thinking group of professionals.

‘I would especially like to thank chief superintendent Declan Daly…’

The endorsement was also welcomed by Independent TD Michael Lowry, in the Dáil. He said: ‘I believe this endorsement by An Garda Síochána must result in Cybersmarties being introduced to every primary school in the country with immediate effect.’

The Department of Education confirmed Mr Hudner met with then-minister Richard Bruton and an official in 2017 to pursue this goal. At that meeting, Mr Hudner was told the Department ‘does not endorse, promote or advise on any individual or commercial products or services outside of those procured or developed and quality assured by the Department itself’.

Prior to its 2020 endorsement of Cybersmarties, An Garda Síochána had never allowed its emblem and badge to be used commercially.

Under the Garda Síochána Act 2005, it is an offence for any person to use, without lawful authority, the Garda badge/crest for commercial purposes.

From 2020 and until this year, Cybersmarties displayed the Garda emblem and badge prominently to promote its business – as did Cybersmarties franchisees in other jurisdictions. These franchisees included Doug Howlett, the Munster rugby hero and All Blacks’ record try-scorer.

Mr Howlett, who described himself as a ‘friend’ of Mr Hudner, did not respond to repeated MoS queries in recent weeks.

Cybersmarties CEO Diarmuid Hudner

Doug Howlett, who described himself as a ‘friend’ of Mr Hudner, did not respond to repeated MoS queries in recent weeks

From its inception, Cybersmarties was seen as a positive child safety tool by many and a potentially lucrative earner by investors. In a 2024 investment pitch, Cybersmarties valued itself at more than €14million and predicted annual revenue of more than $205million (€176million) in the US alone by year five, with a gross profit margin of 96 per cent.

The projected figures for other countries were just as impressive – but the predicted growth never materialised. Despite its early promise, and claims of more than a million users, Cybersmarties has never turned a profit. 

By the end of 2023, its accounts were €1.3million in the red. Subsequent accounts are now overdue and none of the Cybersmarties websites or apps are active anymore. Meanwhile, a group of insiders described how they lost out financially from their association with the start-up.

These include Australia-based Shari Brewer, who paid $100,000 AUD (€61,370) – her life savings –to secure the rights to run Cybersmarties in Queensland.

Another is Limerick native, Aisling Waldron, who was leader of digital safety at New Zealand’s Department of Internal Affairs (DIA) when she was head-hunted by Mr Hudner to become Cybersmarties’ global head of monitoring.

The presence of Mr Daly – and his pedigree within law enforcement internationally – was one of the factors that attracted Ms Waldron to Cybersmarties.

The Garda endorsement was another compelling attraction, as well as the fact Cybersmarties portrayed itself as being an official partner of UNICEF.

But now Ms Waldron – and others who have lost money – have questions about the UNICEF partnership and the Garda endorsement.

Cybersmarties has been representing itself as a ‘global partner’ of UNICEF for years.

But this week a UNICEF spokesman told the MoS: ‘We have no record of a signed partnership agreement ever existing between UNICEF and Cybersmarties… there is no written agreement between UNICEF and Cybersmarties. They are not a partner of UNICEF.’

When this was put to Mr Hudner, he claimed Cybersmarties had been accepted as a ‘member of the UNICEF Global Partnership to End Violence Against Children and was authorised to use the Partnership’s branding’. But he acknowledged: ‘I do now recognise that we may not have drawn the distinction clearly enough between participation in that programme and any formal partnership.

‘We have now acted to ensure that all public-facing materials accurately reflect the nature of that relationship.’

Until recently, Cybersmarties was also continuing to represent itself as being endorsed by An Garda Síochána.

But Garda headquarters said there had not been ‘a working relationship’ with Cybersmarties since at least October 2022’.

A spokesman said: ‘At the time, this was not considered by An Garda Síochána as a commercial endorsement. It was considered a crime prevention partnership to protect young people from online harm. Use of the Garda crest was granted on that basis. This happens on a regular basis with our crime prevention and public safety partners, which can include commercial organisations.’

They confirmed the force ‘does not provide commercial endorsements and regularly declines requests for same’.

Asked to comment on a claim by Cybersmarties that it was awarded the ‘An Garda Síochána Patent for Safety’, the spokesman insisted the force ‘does not provide “patent(s)” of approval, “seal(s)” of approval” nor “seal(s) of safety”’.

He said: ‘At the instigation of a Garda senior officer, An Garda Síochána met with this named entity in recent years and informed them in-person that there was no longer any arrangement between the parties.’

When this was put to Mr Hudner, he said: ‘At no point was Cybersmarties informed that the endorsement was subject to an expiry date or renewal process and, accordingly, it understood the endorsement remained in place until it was recently advised otherwise.

‘Cybersmarties’ engagement with Garda representatives, including the use of related references and materials, was always conducted openly and with the knowledge and agreement of the relevant parties.’

Those owed money by Cybersmarties want to know why the company was allowed to continue using Garda credentials if gardaí had told them to stop in 2022.

They also questioned if any conflict-of-interest rules were broken when Declan Daly left the force in October 2021 to take up his role with Cybersmarties.

Mr Daly did not break any Garda guidelines, but current rules are out of step with recommended international best practice. In November 2021 – the month after he retired – Mr Daly was allotted a share in Cybersmarties for a nominal fee of €1.

Most other shareholders paid a minimum of €10,000 per share with some paying more than €100,000. A day after Mr Daly received his share, another US investor paid €43,500 per share.

By 2024, as it sought to sell seven per cent of its equity for a €1million investment, Cybersmarties itself valued each share at €92,857.

But regardless of the value of his shareholding and his pay arrangements with Cybersmarties, Mr Daly was entitled to move from his Garda role directly into the private sector.

Since 2017, gardaí must sign a code of ethics to swear they will not ‘allow circumstances to arise that might compromise, or appear to compromise’ themselves or the force.

They must also ‘appropriately declare and manage any actual or potential conflict of interest’. But the code does not apply to former officers and there is no prohibition on gardaí moving directly to the private sector.

In a 2022 report, titled: ‘Countering the Threat of Internal Corruption’ the Inspectorate advised: ’The situation in the Garda Síochána is clearly out of line with the international practice.’

The Inspectorate recommended that the Department of Justice should review the ‘post-employment activities of the Garda workforce, and develop suitable rules and processes to reduce the risk of conflict of interest arising after a member of the Garda workforce leaves the organisation’.

The Department of Justice this weekend said the Inspectorate’s recommendation remained ‘under consideration’.

In its report, the inspectorate outlined how ‘a conflict of interest may impact on the performance of an employee during the transition period from one employment to the next’.

It says: ‘A previous employment can provide an undue advantage in terms of favourable treatment for the person seeking employment in a new organisation.

‘Post-employment, a previous employment relationship can provide an advantage to the ex-employee in terms of reach back to their former employer regarding access to confidential information and influence in decision-making.’ In light of this, the MoS asked Mr Daly how he may have dealt with any potential conflict of interest that may have arisen.

In his response, via a solicitor’s letter, Mr Daly denied any conflict ever existed in his specific case.

‘There was never any ethical issues or conflict of interest,’ the letter states. The letter confirmed that, as the ‘Superintendent in charge of the child protection’, Mr Daly had received a 2015 request from Mr Hudner to discuss Cybersmarties.

It said Cybersmarties had multiple ‘contact points’ with An Garda Síochána ‘at various ranks, from Garda rank up to Assistant Commissioner level’.

It added: ‘Our client was one of those points. This was normal and routine given the child protection nature of the company and An Garda Síochána.’

During his meeting with Cybersmarties, Mr Daly provided ‘his thoughts on the project’.

But following his promotion to Chief Superintendent in 2017, Mr Daly says he became ‘less involved’ with Cybersmarties.

In 2020, the Garda endorsement of Cybersmarties then went on to be approved by Garda headquarters – with Mr Daly among those who recommended it.

‘Our client recommended the endorsement given the child protection benefits of the platform,’ the solicitor’s letter states.

‘This recommendation would have followed the views and recommendations of other ranked members, specifically the superintendent in child protection dealing directly with the company at the time.’

Mr Daly’s solicitor also said his client never had any personal or private interest in Cybersmarties while a serving member of An Garda Síochána and had never received any wages, payment or expenses from the company.

Asked about unpaid wages, money owed by the company, and the Vatican Bank board president’s comments, Mr Hudner said Cybersmarties had experienced ‘significant commercial and funding challenges’.

He added: ‘The business pursued investment and partnership opportunities over an extended period and there were occasions where anticipated funding did not materialise. I fully acknowledge that this created very difficult circumstances for staff, contractors and franchise partners, including delays in payments owed, and I regret that deeply.

‘I have contributed significant personal resources into the business over a prolonged period, including making payments directly to staff and supporting operational costs where possible. I remain committed to resolving outstanding monies owed.’

Mr Hudner said he had ‘not been contacted by the Garda in relation to any alleged complaint or investigation’ but was ‘willing to engage with any such investigation if required’.

michaelofarrell@protonmail.com