Former Trade Board executive quilty of fraud

A FORMER executive with An Bord Trachtala has been given a 15 month suspended sentence for defrauding £128,000 from a development fund set up to help Irish businesses exporting to Britain during the 1992-93 sterling crisis.

Michael Anderson had paid back all the money misappropriated in the fraud Del Garda John F. McArdle, of the Garda Bureau of Fraud Investigations, told Dublin Circuit Criminal Court.

Mr Hugh Hartnett, defending, said Anderson had worked with the Trade Board for 25 years and was highly respected and regarded as very diligent. He had travelled abroad on occasions as its representative.

When the fraud was discovered by an internal investigation, he was asked to "do the decent thing Anderson was under extreme stress and he misinterpreted the remark, resulting in a very serious suicide attempt, said Mr Hartnett.

Anderson had destroyed his career and it was almost as if he had set out to sabotage his bright future ironically, said counsel, his client had been critical of the amount of work carried out by his colleagues.

Mr Hartnett added he was not trying to excuse his client's wrong doing by highlighting his stress and personal problems but only to explain his crime. Anderson now regretted his actions.

Judge Cyril Kelly said he accepted Anderson's suicide attempt was very serious and was not a sham. He required four months residential treatment and was still under therapy. The State was at no loss since all the monkey had been repaid and nothing would be gained by incarcerating him.

Anderson (45), of Ventnor, Thormanby Road, Howth, Co Dublin pleaded guilty to six sample charges of forging documents with intent to defraud on dates unknown between October 6th, 1992 and April 30th, 1993.

Prosecution counsel Mr Paul McDermott said the charges related to the Market Development Fund which An Bord Trachtala set up to aid businesses trading with Britain during the 1992-1993 currency crisis.

The fund had been allocated £15 million which was to be used for production development under three headings industrial, consumer and food.

The development fund scheme was to operate from October 6th, 1992 to March 31st, 1993. Thousands of companies applied for the assistance and a total of 900 applications were granted.

Anderson was appointed team leader of industrial production development and he was responsible for inspecting and approve applications made by Det Garda McArdle said Anderson bought two `shelf' companies, Uniline Ltd and Marfeb Ltd, and registered them at an accommodation address. The companies had no office equipment or staff and Anderson registered fictional names as directors.

He submitted bogus applications to the Market Development Fund for refunds on behalf of these companies. The submissions came to himself as team leader of the industrial production section and were "approved" by him for payment.

The first refund made was for £9,400 on January 16th, 1993, and was credited electronically by the Allied Irish Bank, the board's bankers, to Marfeb.

Then a receipt was sent to the company, with a letter and application form inviting it to seek further assistance for the next month.

In total £128,000 was paid out on the bogus applications submitted to the fund by Anderson. Marfeb received £62,200 and Uniline was paid £65,800.

Del Garda McArdle said that, on April 16th, 1993, an investigation was set up by An Bord Trachtala after an AIB employee noted monies from the two companies' accounts were being paid into personal building society accounts.

Later, Anderson admitted he set up these accounts, using the names of the fictional directors. The investigations revealed the audited company accounts filed as a requirement under the scheme were either entirely false or the altered accounts which had been submitted by another unwitting company.

Det Garda McArdle said when Anderson was first interviewed he was not very helpful but when An Bord Trachtala took a High Court action against him, he gave a full account on affidavit of the fraud.