A former Eircom director who defrauded a building society out of €1.4 million for the purpose of setting up a lottery in Peru has been jailed for four years.
Michael Gormally (aged 52) used false names on mortgage applications which he presented to ISC Building Society at New Century House on Mayor Street in Dublin over a three-year period.
The father of six also acted as a facilitator to obtain mortgages for two people who were unaware documents were falsified.
Gormally of Prospect View, Prospect Manor in Rathfarnham 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 BL a complaint was made to gardaí 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 managed to get €2.4m, of which €1.4 million was for his own use.
The remainder of the money went on mortgages for two individuals which Gormally acted as a facilitator and prepared their mortgage applications. The two individuals have been exonerated and are repaying their mortgages.
Gormally’s house was searched after he was nominated as a suspect and a laptop, storage devices and a false driving licence were seized on February 11, 2011.
He told gardaí he used the €1.4m as seed capital to get investors to come on board to set up a Peruvian lottery.
He admitted he falsified documents to obtain the loans and said all the money was gone, apart from €199,000 which has been frozen in a bank account.
Det Gda Browne agreed with defence counsel Diarmaid McGuinness SC that Gormally “bared his chest and admitted what he had done in a full, frank and comprehensive admissions.”
“Two of the mortgages he applied for weren’t taken out and he cancelled another one himself,” said Mr McGuinness.
Counsel said Gormally had “always intended to pay back the money when the lottery in Peru was established.”
Judge Martin Nolan said Gormally is a “man of some, if not great intelligence with knowledge of how financial institutions work.”
“His motivation was to help a couple he knew to obtain a mortgage and the purpose of the other money was to set up a lottery in Peru and the only way to get the money was to deceive ISC. There is no evidence of excessive high living or assets.”
“He embarked on a mission to help people in Peru but the means he adopted were criminal,” said Judge Nolan.