Ex-Anglo directors’ sentence hearings begin

The sentence hearing of the two former Anglo Irish Bank directors convicted of providing illegal loans to 10 individuals is due to open at Dublin Circuit Criminal Court today before Judge Martin Nolan.

Former Anglo director of finance William McAteer and former head of Irish lending Pat Whelan were convicted by a jury on April 17 following a 48-day trial of providing the loans to the group known as the Maple Ten.

The jury found them guilty on 10 charges each of breaching Section 60 of the Companies Act 1963, by lending money to investors to buy shares in Anglo for a share support scheme.

The jury acquitted them on six further charges each of lending money for the same purpose to members of former billionaire businessman Sean Quinn’s family.

Their co-accused, former Anglo chairman Sean FitzPatrick, was found not guilty on all charges against him in relation to the Maple Ten. Judge Nolan had already directed not guilty verdicts on the other six counts because of lack of evidence. The three men had denied all charges.

The Maple Ten deal was designed to unwind the 29.4% control of Anglo which Mr Quinn had built up through investment tools known as contracts for difference.

The 10 investors were loaned a total of €450m by Anglo to buy around 10% of the bank’s shares which Mr Quinn controlled. His wife and five children were also loaned €169m to buy nearly 15% of the stock.

After five days of deliberating, the jury returned unanimous guilty verdicts.

Mr McAteer, aged 63, of Rathgar, Dublin 6, and Mr Whelan, aged 52, of Malahide, Dublin, are on continuing bail.

Judge Nolan was highly critical of the role of the former financial regulator, Pat Neary, who gave evidence that he hadn’t questioned Mr Quinn about his large holding in Anglo because he didn’t feel it would be “fair or appropriate” for him “to tackle a person” about his own investment portfolio.

Judge Nolan said: “I also take the view that the financial regulator took no steps to discourage the scheme or in anyway stop it. And it seems from regulator witnesses that they were somewhat relieved when the scheme went through and that the contracts for difference issue was alleviated and regularised.”

During legal argument in the jury’s absence, Judge Nolan indicated that he would take the approval of the financial regulator as “a mitigating factor” if the men were convicted.

Judge Nolan is scheduled to begin the sentence hearing at 2pm but has indicated a decision is unlikely until a later date.

The proceedings at the sentence hearing will include a summary of relevant trial evidence in relation to the convictions, followed by submissions on the men’s behalf.

The trial was a result of the biggest fraud investigation in Irish history. It was the first time anyone was tried for the offence and the first time an enlarged jury of 15 was chosen to hear the evidence.