State witnesses don’t always tell the truth, jury told

Witnesses for the State don’t always tell the truth in court, the jury in the trial of three former Anglo Irish Bank directors was told.

Paul O’Higgins, prosecuting, began his closing speech yesterday afternoon and told jurors that some witnesses who gave evidence during the 10 week trial may have had their own agenda.

Earlier in the day, the jury was directed to find former Anglo chairman Seán FitzPatrick not guilty of six charges relating to illegally lending money to six member of Seán Quinn’s family to buy shares in the bank.

The jury was also directed to find former Anglo head of lending in Ireland, Pat Whelan, not guilty on another seven charges. These counts alleged he was privy to the alteration of loan facility letters to seven individuals in October 2008.

“For good reason, I have directed not guilty verdicts,” Judge Martin Nolan told jurors. “It will all be made apparent to you in due course.”

The prosecution speech will continue this morning. This will be followed by speeches from each of the men’s defence teams. The jury will then be addressed on the law by Judge Nolan.

Mr FitzPatrick still faces 10 charges of illegally loaning money to the Maple Ten group of investors to buy shares in the bank. This was part of a plan to unwind Seán Quinn’s 29.4% control of Anglo.

Mr Whelan and former director of finance William McAteer also still face these charges as well as six charges relating to the loaning of money to the Quinn family.

The three accused are charged at Dublin Circuit Criminal Court with breaching Section 60 of the Companies Act 1963 by lending money to investors to buy shares in Anglo.

All three have denied the charges.

Mr O’Higgins told jurors sometimes witnesses don’t tell the truth when they come to court or have their own interests in the case.

He pointed out the Maple Ten witnesses were specifically recruited by the bank for the deal because of their long standing connection with the bank.

He said members of the Quinn family came to court with an agenda and have issues in relation to Anglo or people in Anglo.

In relation to witnesses from the financial regulator’s office, he said that that office “also had a corner to protect.” Mr O’Higgins said the Department of Finance is also arguably not free of views or involvement with what happened at Anglo.

Counsel told jurors a great deal of evidence they have heard is not relevant to the case, including evidence the financial regulator approved and encouraged the deal. Any legal advice taken by the accused at the time of the deal is also irrelevant.

He also said that it is not a defence to say the bank would have gone under if the accused had not taken action. He said such a situation does not provide an excuse for breaking the law.

He said that Mr Whelan and Mr McAteer “were directly instrumental” in carrying out the lending themselves or through other people. He said Mr FitzPatrick is guilty because he knew about the lending and did nothing to stop it.