Three former Irish bank executives sentenced for 2008 fraud scheme

Three former executives connected to the failed Anglo Irish Bank were sentenced to prison for a 7.2-billion-euro (10.1-billion-dollar) conspiracy to defraud in 2008, Irish broadcaster RTE reported on Friday.

Former Anglo Irish Bank executives John Bowe and Willie McAteer, as well as former chief executive of the Irish Life & Permanent financial institution, Denis Casey, were found guilty in June of misleading the public as to the true state of Anglo Irish Bank's balance sheet.

Judge Martin Nolan, who called their actions "reprehensible," sentenced Bowe to two years, McAteer to three-and-a-half years, and Casey to two years and nine months.

The three were convicted of conspiring to set up a 7.2-billion-euro circular transaction scheme between March and September 2008 to boost Anglo's balance sheet.

Irish Life deposited the money through a non-banking subsidiary as Anglo's financial year-end drew near, allowing the bank to categorize the money as customer deposits, which are viewed as more secure, instead of a deposit from another bank.

The judge also strongly criticized Ernst & Young, Anglo Irish Bank's accountants at the time, broadcaster RTE reported.

Nolan said Ernst & Young should have known the true situation at least by October 2008 if it had been doing its job properly, adding that he did not know if it was "blindness" or "wilful blindness."

Last update: Fri, 29/07/2016 - 17:47
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