Banks’ loans to solicitor ‘reckless’

Anglo Irish Bank and EBS engaged in reckless practices in lending to Thomas Byrne, it has been suggested at the former solicitor’s theft and fraud trial.

Damien Colgan, defending, put it to senior officials from both banks that their approval process for issuing loans to the accused may have been irresponsible.

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, then 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.

Seamus Corbert, a former senior manager with the now defunct Anglo Irish Bank, confirmed the bank granted Mr Byrne a €3.2m loan on the back of 13 properties worth about €5m.

The witness was asked “if it was not reckless” to not carry out inquiries as to the purpose of a commercial loan. Mr Corbert replied: “I’m not saying I didn’t carry out inquiries”

Conor Daly, previously head of corporate risk at EBS, said he wasn’t with the building society when over €10m in loans was given to Mr Byrne.

The trial continues.