The jury in the National Asset Management Agency (Nama) trial in Belfast was presented with documents on Tuesday which the prosecution says indicate two prominent businessmen withheld vital information regarding a £1 billion (€1.15 million) property deal.
Ian Coulter (54) from Templepatrick Road, Ballyclare, Co Antrim, and Frank Cushnahan (83) of Alexandra Gate, Holywood, Co Down, are on trial at Belfast Crown Court.
Mr Cushnahan has been charged with two counts of fraud – one offence of failing to disclose information and a second offence of making false representations. He denies the charges.
The two charges span April 1st to November 7th, 2013.
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Mr Coulter has also been charged with two counts fraud by false representation, as well as making/supplying articles for use in fraud, removing criminal property and transferring criminal property.
The five charges faced by Mr Coulter – which he denies – are over a timeframe of April 3rd to December 1st, 2014.
All the charges relate to the sale of the Northern Ireland property loan book held by Nama, which was set up in the Republic following the property crash and banking crisis in 2009.
During the second day of the prosecution’s opening, Jonathan Kinnear KC, prosecuting, presented the jury with documents which he said indicated that Mr Coulter and Mr Cushnahan were lying about their involvement with the American investment fund Pimco.
These documents included emails, memos and letters.
Mr Cushnahan was appointed as an external member of the Northern Ireland Advisory Committee, which was set up by Nama to advise in respect of the property debts in Northern Ireland.
In this role, it is the prosecution’s case he was under a legal duty to disclose any conflict of interests he had – and which Mr Kinnear said he failed to do.
Mr Kinnear said documentation indicated Mr Cushnahan was keeping his involvement in the sale of the Northern Ireland loan book with Pimco “a secret”.
This, the prosecution says, included a meeting at Stormont in April 2013 with Sammy Wilson, who was then the North’s finance minister.
Mr Cushnahan attended this meeting as did Nama chairman Frank Daly.
Mr Kinnear said that at this point Mr Cushnahan was “already working on” the sale of the whole Northern Ireland loan book and that Mr Daly had “no idea” Mr Cushnahan was “already trying to cook up a deal” with Mr Coulter.
The prosecution barrister also referred to documentation regarding a Northern Ireland Advisory Committee meeting in April 2013.
The meeting, attended by Mr Cushnahan, took place at Tughan’s solicitors’ office in Belfast. Mr Kinnear said that when business turned to “disclosures of interest”, none was made.
The barrister also drew the jury’s attention to a meeting held at Stormont on May 22nd, 2013.
Those attending the meeting included the vice-chairman of Pimco, Mr Cushnahan, Mr Coulter, Peter Robinson, who was then first minister, and his DUP party colleague Mr Wilson.
This meeting was to discuss how Pimco would approach the management of the Northern Ireland loan book.
Mr Kinnear said: “The purpose of that meeting, we say, was to persuade politicians, the [UK] government, the executive, that Pimco was the right buyer, so that they – Mr Robinson and Mr Wilson – would put the weight of the Northern Ireland Executive behind that bid and support it.”
If this deal had gone ahead, which it ultimately did not, Mr Cushnahan and Mr Coulter were due to receive a substantial amount of money, the court heard.
“Any suggestion that may come now or later that they were involved for some philanthropic reason, that they were doing it out of the kindness of their hearts or for the good of the Northern Ireland economy, would be way off the mark. These people were in this to make money,” Mr Kinnear told jurors.
The trial continues before a jury of nine men and three women.
