Rogue trader Rusnak likely to plead guilty to fraud today

John Rusnak, the former foreign currency trader at AIB's Allfirst branch in the United States, is expected to plead guilty today to fraud.

Rusnak is facing charges of defrauding Allfirst of almost $700m.

He is indicted on seven counts of bank fraud and false entry into bank records and is due to appear in court today as part of a plea bargain agreement with federal prosecutors.

It is reported that Rusnak could admit to some charges that could clear the way for criminal investigations of others who may also be connected with the fraud.

He is not being charged with having received any of the $691m, but that his fraudulent activities resulted in the payment of salary and bonuses of $850,000 over a four-year period up to 2001.

A trial date is set for February 10 next year.

AIB has since reached agreement to sell part of its Allfirst subsidiary to M&T bank in America for $3.1bn.