Anglo Irish Bank criminal cases could run for several years, High Court told

Criminal proceedings arising from the investigation into the 2008 collapse of the former Anglo Irish Bank could run for several years when the right to appeal is take into account, the High Court has been told.

Further charges arising from the investigation carried out by the Office of the Director of Corporate Enforcement (ODCE) may also be brought, Mr Justice Peter Kelly heard.

The judge said, due to his concern to “ensure impetus is maintained” in the investigation, he would extend it for another year, not for the three years sought by the ODCE, and the court would review the position on January 20th, 2015.

Of the five matters subject of investigation, the inquiry has been completed in three, with criminal proceedings initiated by the Director of Public Prosecutions, but matters were continuing “at a rather slow pace” in relation to the remaining two issues, he noted.

Those two issues are the provision of a loan to a former director in circumstances that may be contrary to common law and the Companies Act; and the communication of possible false or misleading information in certain Anglo public statements in 2008, which may constitute breaches of the EU transparency directive and other regulations.

The DPP had requested certain additional investigative work be carried out in relation to the director’s loan issue. That investigation was completed in February 2013 and a further file was then sent to the DPP, the court heard.

Files concerning the second matter were sent to the DPP in December 2010 and March 2012 and the need for further work in that regard is being kept under review with the DPP’s office, it was stated.

The three areas where investigations are complete related to alleged breaches of Section 60 of the Companies Act; alleged directors’ transactions including refinancing; and alleged back-to-back deposit arrangements with the Irish Life & Permanent group at the end of Anglo’s financial year in September 2008.

The judge was told the first criminal trial arising from the investigation is expected to open on February 4th next, with jury selection to begin on January 31st.

That trial involves former Anglo chairman Seán FitzPatrick and former executives William McAteer and Pat Whelan. All three have been charged with offences under Section 60 of the Companies Act

Three other former senior bank officials – Dennis Casey and Peter Fitzpatrick, formerly of IL&P, and John Bowe, formerly of Anglo – were charged last December in connection with the alleged back-to-back deposits transactions. All three were charged with conspiracy to defraud contrary to common law. Mr Bowe faced an additional charge that he falsified accounts contrary to Section 10 of the Theft and Fraud Act.

The three were remanded on bail until March 12th when a book of evidence will be produced. Their case is unlikely to be heard this year.

Yesterday, in an affidavit on behalf of the ODCE presented by Paul O'Higgins SC, Supt Eamonn Keogh said the criminal proceedings meant the application to extend the probe, and to extend orders allowing for further retention of millions of documents seized from Anglo, was being made at a "very sensitive" time and it was essential nothing was said in public during the application that could prejudice the trial.

Supt Keogh said the DPP, as prosecutor, was obliged to disclose relevant material seized from Anglo to the accused and the ODCE had produced material for the DPP for that purpose.

Shane Murphy SC, for Irish Bank Resolution Corporation, formerly Anglo, agreed to the extension of the investigation and the continued retention of the material seized from the bank.