ARRESTED

THE prospect of prosecutions over scandals at Anglo Irish Bank is moving a step closer following the arrest of former Anglo boss Sean FitzPatrick.

Mr FitzPatrick was questioned for 12 hours by detectives throughout yesterday.

At tea-time his detention period was extended for a further 12 hours, meaning he can be held until 6.30am today.

The 61-year-old was arrested on suspicion of false accounting under section 10 of the Criminal Justice (Theft and Fraud Offences) Act 2001. A person convicted in the higher courts of this offence can face up to 10 years in jail or an unlimited fine.

The multi-millionaire was arrested at his plush, gated residence at Greystones, Co Wicklow, at 6.20am by a team of officers from the Garda Bureau of Fraud Investigation (GBFI). The detectives searched his home and took away a small amount of documentation.

Mr FitzPatrick was brought to Bray Garda Station and detained under section 4 of the Criminal Justice Act 1984. This allows for a possible detention period of 24 hours. He was quizzed by teams of detectives from the 20-strong Anglo investigation squad at the GBFI.

It is understood Mr FitzPatrick contacted his solicitor after being arrested. Although solicitors are not allowed in interview rooms with their clients, they can be contacted by them.

Mr FitzPatrick stepped down in December 2008 after admitting hiding from the bank’s shareholders €87 million of personal loans from Anglo between 2000 and 2007. He had invested in property funds, Anglo shares, film finance, pension investments, a casino in Macau and Nigerian oil. He hid the loans from public view by moving the funds from Anglo to Irish Nationwide before the end of the financial year.

This and other matters have been investigated by the GBFI in a year-long investigation. This is being carried out in conjunction with the Office of the Director of Corporate Enforcement, which has eight GBFI detectives seconded to it.

The other issues involve Anglo loans totalling €450m to a “golden circle” of investors to buy 10% of shares in the bank and revolving loans of €7.45 billion to Anglo from Irish Life & Permanent.

Senior Garda sources said: “This is a highly complicated investigation. The time you arrest someone is when you have the maximum information in the bag. You do not go near the interview room until then.”

He said the detention period was extended because of the complexity: “There’s a lot of complicated material to put to him. That takes a long time to do and further inquiries have to be carried out.”

Garda sources said any statements from the interviews will feed into the file for the Director of Public Prosecutions. This is unlikely to be sent to the DPP for a number of weeks, possibly months.

Last November, Garda Commissioner Fachtna Murphy said he expected the file to be with the DPP by the end of spring.

Under section 10 of the Theft and Fraud Act a person is guilty of false accounting if they “dishonestly, with the intention of making a gain for himself or herself... destroys, defaces, conceals or falsifies any account”.