Ex-financial regulator official ‘unaware’ of investors’ plan

The former prudential director with the Financial Regulator has told the trial of three former Anglo Irish Bank executives that he was not aware the bank was financing the purchasing of its own shares by 10 high net worth investors.

Con Horan, previously described as “second in command” at the regulatory authority, said in July 2008 he told the bank it was up to them to ensure the plan to sell off the bank shares held by the Sean Quinn through a large CfD position was in compliance with all regulatory requirements.

Seán FitzPatrick, Patrick Whelan, and William McAteer have been charged at Dublin Circuit Criminal Court with 16 counts of providing unlawful financial assistance to 16 individuals in July 2008 to buy shares in the bank. The 16 individuals are six members of the Quinn family and the Maple 10 group of investors.

Mr Whelan has also been charged with being privy to the fraudulent alteration of loan facility letters to seven individuals in October 2008.

Mr FitzPatrick, aged 65, of Greystones, Co Wicklow; Mr McAteer, aged 63, of Rathgar, Dublin; and Mr Whelan, aged 51, of Malahide, Dublin, have pleaded not guilty to all charges.

Mr Horan told Úna Ní Raifeartaigh, prosecuting, that he did not became aware of the level of the Quinn CfD exposure or that it was a shareholding in Anglo but he said it was a serious situation for the insurance company because it reduced its solvency.

Mr Horan said David Drumm, then CEO of Anglo, rang him on July 9 to tell him the executives of the bank had decided to place the shares with “a group of Irish and international investors”.

He said the other 10 investors were not identified to him.

The trial continues.