FitzPatrick met with Quinn to ‘mend fences’ after Maple Ten deal

Former Anglo Irish Bank chairman Sean FitzPatrick met with Sean Quinn after the allegedly illegal Maple Ten deal to “mend fences” with the businessman who was threatening to sue the bank.

The trial of Mr FitzPatrick and two former executives of the bank heard that gardaí accused Mr FitzPatrick of stepping outside his non-executive role by meeting with Mr Quinn.

Mr FitzPatrick said this had been done “in exceptional circumstances”. He said by that stage Anglo CEO David Drumm had fallen out with Mr Quinn so Mr FitzPatrick needed to meet with him to fix the relationship.

Separately, counsel for Mr FitzPatrick accused other former Anglo board members of being vague in their evidence to the court and said this was in stark contrast to the direct way his client has met the case.

The trial is approaching its closing stages. Yesterday, Judge Martin Nolan told the jury he expects it will be concluded by Friday week.

Mr FitzPatrick is accused, with William McAteer and Pat Whelan, of providing funding for the purchase of its own shares in contravention of the 1963 Companies Act. They 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 Ten 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.

The jury yesterday heard the last of Mr FitzPatrick’s five Garda interviews which were conducted in March 2010. Sgt Catharina Gunne told prosecuting counsel Úna Ní Raifeartaigh SC that the accused said Anglo were trying to solve an “imperfect and dangerous situation” when the Maple Ten deal went though.

Mr Quinn had built up a 29.4% stake in the bank and this was destabilising the share price. The court heard Mr Drumm came up with a solution to have ten Anglo customers buy a total of 9.4% of the bank’s shares to help unwind Mr Quinn’s control. This group became known as the Maple Ten.

Mr FitzPatrick told gardaí that Mr Drumm told him about the plan on July 9, 2008, but did not tell him the identities of the ten. The accused said he did not think this was strange.

Gardaí asked him why he didn’t “overrule” Mr Drumm and order him to tell him the names.

The accused replied Mr Drumm was the CEO and it was his decision to make.

Mr FitzPatrick told investigators Mr Quinn was very unhappy after the Maple Ten deal went through. The trial previously heard the businessman believed he was forced to sell the stock at too low a price.

Mr FitzPatrick said that the relationship between Mr Drumm and Mr Quinn became difficult and “they had effectively fallen out.” He said Mr Quinn was threatening Anglo with legal action over the deal.

The accused said he was asked to meet with Mr Quinn to try fix the relationship.

“My instructions were quite clear, mend fences, do not negotiate” he told gardaí. He said he was seen as the only person who could talk to Mr Quinn as they had met before and held equivalent positions in their organisations.

When gardaí asked him was he exceeding his role as non-executive chairman, Mr FitzPatrick replied that “it was appropriate in the exceptional circumstances.”

Counsel for Mr FitzPatrick, Michael O’Higgins SC, put it to Sgt Gunne that his client had been much more direct in giving information that some of the other Anglo directors.

The trial continues before Judge Nolan and a jury.