Anglo let fraud accused verify collateral for loans

The trial of Thomas Byrne has heard Anglo Irish Bank relied on the former solicitor to provide proof he was using valid properties as collateral on €4.6m in loans.

Anglo let fraud accused verify collateral for loans

The jury were told Mr Byrne applied for and received over €4.6m in loans from now-defunct Anglo. The accused received a €3.2m loan from the bank as a first-time customer in 2006 by using 13 properties as collateral. He claimed he owned the properties and they did not have other loans outstanding against them. A further €1.46m was granted a year later using 19 properties as security.

The court heard it was up to Mr Byrne to verify he owned the properties and to provide details of registration. Anglo hired a lawyer, Andrew Crean Lynch, to handle the verification process but he did not investigate Mr Byrne’s claims.

Mr Byrne, aged 47, of Walkinstown Rd, Crumlin is accused of theft and fraud offences totalling €51.8m. The charges allege he transferred clients’ homes into his name and used them as collateral for property loans.

He has pleaded not guilty at Dublin Circuit Criminal Court to 51 counts of theft, forgery, using forged documents and deception between 2004 and 2007.

Anglo’s former head of fraud prevention, Patrick Beak, told the court Anglo used Mr Lynch to handle the verification process before the loans were issued.

Applying for the first loan, Mr Byrne told Anglo he had 13 properties “unencumbered” by other loans.

Mr Byrne provided the registration details of these properties to Mr Lynch and the matter was not investigated further, Mr Beak said.

The court heard that supplying details of property registration would usually be handled by the borrower’s solicitor but that, in this case, Mr Byrne was acting as his own solicitor.

The process was completed and a cheque for the full amount was issued to Mr Byrne on May 16, 2006.

A similar process occurred when Mr Byrne received a €1.46m loan.

More in this section

Puzzles logo
IE-logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day.

Puzzles logo
IE-logo

Puzzles hub

Visit our brain gym where you will find simple and cryptic crosswords, sudoku puzzles and much more. Updated at midnight every day.

War of Independence Podcast

A special four-part series hosted by Mick Clifford

Available on
www.irishexaminer.com/podcasts

Commemorating 100 years since the War of Independence