Tuesday 21 November 2017

Former Anglo director fined €3,000 for not registering €8.2m loan

Former director of lending at Anglo Irish Bank, Pat Whelan (54) arrives at the Dublin Circuit Criminal Court. Photo: Collins Courts
Former director of lending at Anglo Irish Bank, Pat Whelan (54) arrives at the Dublin Circuit Criminal Court. Photo: Collins Courts
Shane Phelan

Shane Phelan

Former Anglo Irish Bank director of lending Pat Whelan has been fined €3,000 for failing to register a fraudulent €8.2m loan to fellow director Willie McAteer.

Mr Whelan (54), of Coast Road, Malahide, Co Dublin, is also disqualified from being a director of a company for five years as a result of the conviction.

But the sentencing of former Anglo finance director Mr McAteer (66), who admits fraudulently obtaining the cash to avoid having to sell his Anglo shares, has been postponed to next week.

Dublin Circuit Criminal Court heard Mr McAteer, of Greenrath, Tipperary Town, Co Tipperary, faces up to seven years in prison for the offence.

He took the loan on September 29, 2008, to avoid the forced sale of 3.3 million shares, a situation Anglo felt would be catastrophic for the bank.

Mr McAteer used borrowings from Bank of Ireland to buy the shares, but there was a clause in the loan agreement allowing the lender to sell the shares if their value decreased to a certain level.

The court heard Anglo believed the sale of so many shares would damage confidence in the bank and decided to loan Mr McAteer €8.2m so he could clear the Bank of Ireland debt.

But not only was the loan obtained fraudulently, it was never included in any register of directors loans, as required by law.

In imposing the fine on Mr Whelan, Judge Martin Nolan accepted he "probably did not know the appropriate way to record the loan" as there was no register kept by Anglo.

Mr Whelan has three months to pay the fine or he will face three months in prison. The maximum fine the judge could have imposed was €12,697.

Irish Independent

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