FitzPatrick intended to give profits to bank ‘kid’

Former Anglo Irish Bank chairman Seán FitzPatrick told the High Court he intended any profits from his £250,000 (€290,000) investment in a London property, funded via an Anglo loan, would give “a lift” and “a chance of money” to a “bright young kid” who joined the bank from school.

Mark Redmond could have made thousands “or nothing, which is what it turned out to be”, said Mr FitzPatrick.

He added he paid, from his own money as “gifts”, school and college fees for some children of Anglo officials. While not wishing to “sound arrogant”, he was “quite wealthy” in Nov 2006 when he decided to invest in the Woolgate Exchange property for the benefit of Mr Redmond. Then aged 23 and from Tallaght, Mr Redmond had joined Anglo in 2000 straight from school.

Mr Redmond was working hard including on managing a range of investments of Mr FitzPatrick, his wife, and children and the investment “was to give him the chance of money”.

Mr FitzPatrick said he earlier in Nov 2006 made a £1m investment in Woolgate for his own benefit but its value was now “zero”.

Under questioning by Kenneth Bredin, for the official assignee administering his bankruptcy, Mr Fitzpatrick insisted references in some documents to the £250,000 as a “loan” to Mr Bredin were genuine mistakes or errors. Both he and Mr Redmond had the same understanding, he said.

Mr FitzPatrick, with estimated debts of €150m and assets of €47m, was declared bankrupt in Jul 2010. He and Mr Redmond were yesterday examined in detail about two London property investments organised by property company D2 Private, Woolgate and a Victoria investment, as part of efforts to establish the extent of Mr FitzPatrick’s estate.

Ms Justice Elizabeth Dunne heard the £250,000 loan for Woolgate has since been paid off by Anglo from sums totalling €10m taken by the bank from deposit accounts held with it by Mr FitzPatrick and his wife.