There’s a detailed iol report, and a BBC report, on the record fines [3.25million] imposed by the Republic of Ireland’s Financial Regulator on Quinn Insurance Ltd, and on Sean Quinn personally [200,000]. Sean Quinn has resigned as chairman and as a director of that company, but not from the Quinn Group, following a lengthy investigation by the Financial Regulator which found reasonable cause to suspect “contraventions by QIL of obligations under the Insurance Acts and Regulations, including failure to notify the Financial Regulator prior to providing loans to related companies” – official statement [pdf file]. But RTÉ has the telling detail. Adds Irish Examiner report.From the RTÉ report
RTÉ News understands the key issue is a loan of 288m, which was extended from the insurance company to another related company.
This money was used to part finance the purchase of shares in Anglo Irish Bank. Mr Quinn and his family purchased 15% of Anglo Irish Bank in August.
That stake was worth 715m at the time based on Anglo’s share price of 6.28. The shares were trading at 1.63 today.
In a statement issued in tandem with its results, Quinn Insurance said it advanced funds that supported investments made outside the group during 2008 and at May this year the loans amounted to 288m.