KBC lenders ‘not alarmed’ at Byrne’s fashion house gaffe

A lending official has admitted it “didn’t ring any alarm bells” when former solicitor Thomas Byrne claimed to be a consultant for French fashion houses which were actually Italian. A former official with IIB, now KBC bank, told Mr Byrne’s €52 million theft and fraud trial that the bank lent €9 million to the solicitor after assessing him as having a €6.5 million annual income from his practice and claimed fashion consultancy.

This was in addition to the rental income from his properties. The bank believed Mr Byrne had a net worth of €32 million.

Former KBC official Barry Keely said Mr Byrne claimed to be employed by “French fashion houses” including Prada, Robert Cavalli and Chloe, and to receive €4 million a year for this work.

Gerardine Small, defending, pointed out that Prada and Robert Cavalli were Italian fashion houses, not French. He asked if this error caused alarm with the loan assessors. Mr Keely replied it could be said in hindsight but not at the time. He said the bank was not relying on the fashion house income to pay off the loan.

Mr Byrne (47), Walkinstown Road, Crumlin, is accused of theft and fraud offences totalling €51.8 million. The charges allege he transferred clients’ homes into his name and used them as collateral for loans.