€200k stolen from State ‘mostly’ repaid

Most of the €200,000 stolen by a civil servant from the Department of Education has been paid back by his estate following a settlement after his death.

The State has been advised to pursue a negligence case against the institution where the civil servant banked, National Irish Bank, when the outstanding sum has been returned.

Cathal Wynne, of Toorphelim, Moate, Co Westmeath, took his own life in May 2006 at the age of 33, a week after suspicions had been raised about three cheques he issued on behalf of the department and he was placed under investigation.

It was later discovered that Mr Wynne had paid out €195,000 in home tuition grants to bank accounts he set up using 14 fake names.

Since his death, the department has been chasing his estate for the amount he defrauded. It seized his €39,000 death gratuity, and in May 2008, had an administrator appointed to his will by the High Court.

The department has now confirmed that, in Oct 2011, it reached a settlement with his estate. This has seen the recovery of most of the money Mr Wynne stole, but it has not closed the case.

“[An agreement was reached] between the personal representatives of his estate and the department for the return of a significant amount of the sum defrauded,” said a spokesperson.

“At this point in time, the department has recovered the majority of the money and is pursuing the recovery of the outstanding balance.” it said.

Documents released under the Freedom of Information Act have revealed the full nature of Mr Wynne’s activities and how they went undetected.

An audit circulated in Sept 2006 showed that, between May 2005 and May 2006, 49 suspicious payments were authorised by Mr Wynne for home tuition services.

They were paid to 14 different fictitious individuals who notionally lived at either his home or at another property he owned.

The actions came to light when AIB in Tullamore contacted the department to query three cheques.

Documents also showed that the department had a dispute with NIB when it sought access to the fake accounts.

NIB said it could not grant access to the accounts because of customer confidentiality.

Counsel appointed by the department said there was “sufficient evidence to make a stateable case against the National Irish Bank and sue under tort of negligence”.

High Court records show the department did initiate a case against NIB’s parent, Danske Bank, in 2010, but there has been no activity or judgment in the case since.

The bank has said it has not received any details of claim and cannot comment on legal actions.

The department negotiations with Mr Wynne’s estate are ongoing and until these are completed it cannot consider its action against NIB/Danske.