Victims' fund to meet over fraud claims against bank
A FUND that looks after money for abuse victims as well as vulnerable children and adults is holding a special meeting of its investment committee this week following fraud allegations against the company that manages the money.
The Courts Service will hold the meeting after another government agency claimed last week that the taxpayer had been defrauded by State Street, a US bank that manages funds on behalf of the Courts Service and the NTMA.
State Street manages almost €1.2bn for the Courts Service, which holds the money for children and adults deemed incapable of managing their own affairs.
The money is managed by the Courts Service by State Street Global Advisors, an asset-management arm of the US bank. A separate State Street unit based in London was accused last week by NTMA boss John Corrigan of defrauding Irish taxpayers of €3.2m.
The NTMA has since complained to the gardai and the UK-based Financial Services Authority about the move.
The London-based unit of State Street was not responsible for investing any of the money owned by the Courts Service. Despite this, the service's investment committee will now meet to consider the matter.
Court funds used to sit in a bank account collecting interest but in 2003 a "major modernisation" programme was implemented.
Bank of Ireland Asset Management was appointed as fund managers in 2003 and two Irish units of JP Morgan were appointed as custodian and administrator to the fund.
The Bank of Ireland unit was later bought by State Street after the Irish bank ran into financial problems.