Three former Anglo Irish Bank executives charged with “giving unlawful financial assistance to buy shares” – Updated

With Gardai still seeking Peter Darragh Quinn following the jailing of Sean Quinn jnr after the recent contempt of court ruling, two former Anglo Irish Bank senior executives have appeared in Dublin Criminal Court.  From the Irish Times report

The bank’s former finance director Willie McAteer and executive Pat Whelan are the first people to be charged in the three-and-a-half-year-old Anglo Irish Bank investigation.

Mr McAteer (61), with an address at Auburn Villas, Rathgar, Dublin was charged with 16 counts of giving unlawful financial assistance  to buy shares in Anglo Irish Bank in 2008.

It is claimed the alleged unlawful financial help to buy shares was given between July 10th and July 17th, 2008 to 15 people – which include the so-called “Maple Ten” group of Irish Investors and several members of Sean Quinn’s family – and from July 17th until July 30th, of the same year, to Patricia Quinn, the wife of now bankrupt businessman.

The court granted Mr McAteer bail on his own bond of €1,000 and an independent surety of €10,000 in cash or equivalent. The surety was put up by his wife. Mr McAteer also surrendered his passport for the duration of the court proceedings.

Mr Whelan was charged separately with the same 16 offences.

The loans resulted in the Quinn family owing almost €3billion to Anglo Irish Bank, now the state-owned Irish Bank Resolution Corporation (IBRC), when the share price collapsed.

And with one ‘cunning’ plan rejected, Sean Quinn snr, et al, embarked on another…

The Irish Times report also notes

The Quinn family members who allegedly received unlawful financial assistance were named as Seán Quinn jnr; Collette Marie Quinn; Aoife Quinn; Breda Quinn; Ciara Quinn and Patricia Quinn.

The other Anglo Irish Bank customers are Patrick McKillen; Seamus Ross; Brian O’Farrell; John McCabe; Gerard Maguire; Patrick Kearney; Gerard Gannon; Gerard Conlon; Joseph O’Reilly and Sean Reilly.

The charges were made under section 60 (15) of the Companies Act 1963. Penalties under the Act can include up to five years imprisonment or a fine of €3174.25 per offence.

Update  Former chairman and chief executive of Anglo Irish Bank Seán FitzPatrick has also been charged with the same 16 offences of providing unlawful financial assistance.

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  • Zig70

    My Dad said he was going to protest if Quinn got jailed and the bankers got off scott free. Hopefully this will save me bailing out an old man but not sure why he would care so much. Once you are grown up, you only get taller standing on others shoulders. There should be plenty more in the frame for the fraud.

  • Pete Baker

    Update Former chairman and chief executive of Anglo Irish Bank Seán FitzPatrick has also been charged with the same 16 offences of providing unlawful financial assistance.

  • carnmoney.guy

    Although a welcome move, these charges relate to our capitalist system protecting itself. If banks or other institutions ( remember Robert Maxwell using the Mirror group pension fund to prop up his own shares ) go and buy their own shares it undermines the market system, the traders wont have confidence in the prices quoted, CONFIDENCE is the key.

    The criminal system is not directed at crooks who gained from bonuses due to wreckless and unsustainable lending, but rather those who attempted to manipulate share prices.

    Another banking story hit the headlines yesterday, very poignant given that the Nationwide remained as a mutual against the tide of carpet baggers, yet the boss gets a 50% increase in three years..

    http://www.thisismoney.co.uk/money/saving/article-2176912/Youre-lining-pockets-money-Nationwide-bosses-told.html

  • Pete Baker

    “The criminal system is not directed at crooks who gained from bonuses due to wreckless and unsustainable lending, but rather those who attempted to manipulate share prices.”

    *sigh* Another example of not thinking a position through.

    Manipulating the share price of a bank they are invested in is a criminal offence.

    Bonus payments are an internal matter for the relevant companies.

    Whether you disagree with the criteria for those bonus payments is irrelevant. Provided the bonus payments aren’t for criminal behaviour.

    If, however, you want to put greater restrictions on whom banks can lend to then put that platform forward, and reverse the trend of ‘progressive’ parties over the past 20-odd years [at a rough guess].

  • Mister_Joe

    World average of major CEOs remuneration is now 400X their average employees salary. Disgusting, ain’t it?

  • Pete Baker

    “Disgusting, ain’t it?”

    Really, Joe?

    Your personal moral outrage aside, what would you advocate?

    A State restriction on the level of salary a private company can pay an individual?

    The average salary to be both a maximum and a minimum?

  • Mister_Joe

    Pete,

    I would set it at X times the average salary, X to be agreed by the shareholders. Average salaries normally are a range/band negotiated by the Union if there is one and then as dictated by market supply and demand. No business of the Government other than for minimum wage. The best companies don’t go to the bottom since they are competing for quality, usually.

  • Mister_Joe

    In my first job here, the CEO got about 10X my salary, maybe 20X. I was well paid, he was very well paid.

  • Pete Baker

    “X to be agreed by the shareholders.”

    Then your moral outrage is irrelevant.

    And I’m sure that you checked your salary at the time against the average…

  • Mister_Joe

    Pete,

    I can be outraged at stupid shareholders and corrupt compensation committees if I so wish.
    Average salaries are trivial to calculate in an hierarchical organization.

  • carnmoney.guy

    1.
    *sigh* Another example of not thinking a position through.
    Bonus payments are an internal matter for the relevant companies.

    The shame of banking is derived from them not being independent private, ‘ none of your business ‘ companies, rather at the core of our society, where their good name is backed by our government, not just in name but sadly now in billions of pounds & euro. The banking culture was one of greed, directors and senior managers across Ireland pushing crazy lending, trying to copy the ‘success’ of Anglo-Irish

    any adequate due diligence – forgotten
    the ability to pay – forgotten,
    that asset values can rise or fall – forgotten
    that the money being lent was itself borrowed – forgotten

    Bonuses paid out after such wreckless behaviour is disgusting, immoral and in my opinion illegal.

    Now in an era where most banks have had to be re-capitalised and are owned partly by us, we find that directors pay keeps growing and growing. Go figure.#
    Are they were lending again to help an economy in recession? No, they have suddenly turned into a group of the most cautious money lenders, were good sound businesses have loans refused and overdrafts cut.

    ‘ A State restriction on the level of salary a private company can pay an individual? ‘

    http://www.cfoworld.co.uk/news/people-management/3314156/bonus-boom-drives-ftse-100-directors-pay-up-49-percent/

    Unfortunately we let the market decide, all the cross- company directorships making sure that there is no-one to question their earnings.
    These are the folk who set up worldwide global shell companies to lower their tax bills, you or I get a court appearance for a missed tax bill, yet the heads of big companies get tea at Claridges.

    http://en.avaaz.org/72/britains-tax-men-and-their-dates-with-big-business

  • Greenflag

    @ carnmoney.guy,

    Well said above -Of course not only was money being lent borrowed from the leveraged largess of German/French/British/Irish and American banks but when these ‘investments ‘ in waste paper went under the Irish , American and British etc taxpayers were forced to pay for the banksters losses .

    Theft pure and simple aided and abetted by gutless politicians of all nationalities as they scurried to a) hold on to power or b) direct the blame elsewhere or c) claim that the ‘poor ‘ , the ‘pensioners’ , ‘public sector workers ‘, etc are to blame.

    The truth is that banksters over the past couple of decades with the growing ‘financialisation ‘ of western economies as they moved out of manufacturing into services and money laundering became a law unto themselves aided and abetted by the elected politicians of all western countries . The failure of regulatory agencies to even implement whatever meager controls they had at their disposal also enabled the bankster looters to vacuum billions of dollars from the ‘real economy ‘ we now see people on fixed incomes and pensions and those with any remaining savings being looted by their tax authorities as the central banks keep interests so low that those who saved are getting nothing for their ‘prudence ‘. Instead their capital is being filched from them by the banksters via inflation .

    And now we read that the Irish Governments advisors turn out to be from the ‘Drug Money Laundering Bank ‘ 🙁

    http://laroucheirishbrigade.wordpress.com/2012/07/18/pair-hired-to-clean-up-irish-banks-named-in-hsbc-scandal/

    Max Keiser also picks up on the ’embarassment ‘ ? Whats 2 more ‘dirty banksters’ amidst a plethora of same anyway ?

    http://rt.com/programs/keiser-report/episode-317-max-financial/