Thursday 21 September 2017

Fraudster took €1.4m from ICS to set up Peru lottery deal

Nicola Donnelly

A former Eircom director who defrauded €1.4m from a building society to set up a lottery in Peru has been jailed for four years.

Michael Gormally (52) used false names on mortgage applications which he presented to ICS Building Society at New Century House on Mayor Street in Dublin over a three-year period.

The father of six also helped to obtain mortgages for two people who were unaware that he had falsified documents.

Gormally, of Prospect View, Prospect Manor, Rathfarnham, Dublin, pleaded guilty at Dublin Circuit Criminal Court to four sample counts of inducing ICS Building Society to give him a total of €1,450,000 between 2006 and 2009.

He further pleaded guilty to using a false driving licence as identification for a mortgage on December 11, 2007.

Detective Garda Alan Browne told prosecuting counsel Pieter Le Vert that a complaint was made to gardai by a risk manager at ICS about mortgage applications which Gormally had presented to the building society.

Gormally, who has two road traffic convictions, changed names and dates of births and used falsified payslips and bank statements to get around his credit situation and obtain the money.

He had attempted to obtain €3.8m but only succeeded in getting €2.4m, of which €1.4m was for his own use. The rest of the money went on mortgages for two individuals for whom Gormally prepared mortgage applications using falsified documents. The two individuals have been exonerated and are repaying the mortgages.

Gormally's house was searched and a laptop, storage devices and a false driving licence were seized.

He told gardai he used the €1.4m as seed capital to get investors to come on board to set up a Peruvian lottery.

He admitted falsifying documents to obtain the loans and said all the money was gone, apart from €199,000 which had been frozen in a bank account.

Admissions

Det Gda Browne agreed with defence counsel Diarmaid McGuinness that Gormally "bared his chest and admitted what he had done in frank and comprehensive admissions".

"Two of the mortgages he applied for weren't taken out and he cancelled another one himself," said Mr McGuinness. He said Gormally had "always intended to pay back the money when the lottery in Peru was established".

Judge Martin Nolan said Gormally was a "man of some, if not great, intelligence with knowledge of how financial institutions work. He embarked on a mission to help people in Peru but the means he adopted were criminal".

Irish Independent

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