TWO FORMER high-ranking executives of Anglo Irish Bank were yesterday charged with financial irregularities at the bank.
They are the first individuals to face criminal charges in the 3½-year investigation into the collapse of the bank.
Former Anglo executives Willie McAteer and Pat Whelan were each charged with company law offences relating to providing unlawful financial assistance to 16 individuals in July 2008 as the banking crisis was worsening.
The two accused face charges relating to loans provided by Anglo to a group of investors – 10 customers known as the “Maple 10” and to the five children of bankrupt businessman Seán Quinn and his wife Patricia to buy shares in the bank.
Anglo made the loans to prop up its share price and, in turn, public confidence in the bank.
Mr McAteer, Anglo’s former finance director and second highest-ranking executive after chief executive David Drumm, was arrested on the N7 at Rathcoole on the outskirts of Dublin at 9.50am and brought to the Bridewell Garda station in Dublin city centre.
Mr Whelan, a former Anglo board member and managing director of Anglo’s Irish business, was arrested at his home in Malahide, Co Dublin at 12.25pm and brought to the Bridewell station.
They appeared at separate sittings of Dublin District Court and briefly shared a courthouse cell.
Detectives from the Office of the Director of Corporate Enforcement and the Garda Bureau of Fraud Investigation told Judge Cormac Dunne that the former bankers gave no response when the 16 charges were read out to them.
Mr McAteer (61), of Auburn Villas, Rathgar, Dublin, was released on bail of €1,000 and an independent surety of €10,000.
He handed in his passport and must give 48 hours’ notice if he plans to change address.
Mr Whelan (50), of “Rachra”, Coast Road, Malahide, was also remanded on bail on his own €1,000 bond and €10,000 surety.
Defence solicitor Michael Staines said gardaí had accepted he was not a “flight risk” and were not looking for his passport.
He agreed to sign on once a week at his local Garda station in Malahide.
The court was asked whether he could sign on every Sunday, as he was “over and back” to London where he works during the week.
He must give 48 hours’ notice if he travels outside the State, except to the UK.
The two accused will appear in court again on October 8th when books of evidence will be presented and the court moves towards setting a date for a trial before a judge and jury in the Dublin Circuit Criminal Court.
If convicted, they face up to five years in jail for each charge.
The 16 charges relate to loans advanced to the 10 businessmen and five Quinn children – Seán jnr, Colette Marie, Aoife, Brenda and Ciara – between July 10th and 17th, 2008, and to Patricia Quinn between July 17th and 30th, 2008.
The 10 businessmen are Paddy McKillen, Séamus Ross, Brian O’Farrell, John McCabe, Gerard Maguire, Patrick Kearney, Gerard Conlon, Gerard Gannon, Seán Reilly and Joseph O’Reilly, according to filings to the court.
Anglo said in its 2008 annual report that “10 long-standing clients of the bank” had bought shares with a €451 million loan.
The shares were bought as part of an unwinding of a “large” position in the bank held by Quinn family interests through investments based around the performance of the company’s shares.
Yesterday’s charges were brought ahead of the Office of Director of Corporate Enforcement providing an update to Mr Justice Peter Kelly in court today.
The judge, who has criticised the slow pace of the investigation in the past, agreed last January to extend the investigation to today.
Minister for Justice Alan Shatter yesterday urged people not to say anything that could prejudice the outcome of the criminal prosecutions that have been taken.
