‘Scoping’ exercise underway on suspected €400k fraud

The Garda fraud squad is to be called in once a "scoping" investigation has been conducted into a suspected €400,000 fraud at a credit union.

The Larkhill and District Credit Union in Whitehall, north Dublin, alerted local gardaí about the matter at the end of last year.

While examinations are ongoing, sources said it spans a period of 10-11 years, from 2002/2003 until 2013, involving monies in the region of €400,000.

The detective unit at Santry Garda Station is leading inquiries and is dealing with the board at the credit union and with consultants Grant Thornton.

A statement from the credit union said Grant Thornton had been hired to “carry out a review of unauthorised transactions on a small number of bank accounts”.

Detectives are awaiting a report from accountants from the consultancy firm on its examinations of accounts at the credit union.

“Part of the exercise at the moment is to dredge through everything to identify the scale and details,” said one garda source.

He said that once initial inquiries were completed, the Garda Bureau of Fraud Investigation would be called in.

It has been alleged money was taken from the accounts of a number of members without their knowledge over lengthy periods.

It is further claimed repayments made on loans were not debited from accounts.

It is understood a group of 15 members have made representations to the board of the credit union about these matters.

A statement from the board said that it had an insurance policy which has enabled it to pay out where funds have gone missing.

“The board of directors of Larkhill & District Credit Union would like to take this opportunity to assure the members that their savings are safe, secure and are not affected by the matters in respect of which Grant Thornton have been retained,” the statement said.

The Irish League of Credit Unions said there was irregular activity in a small number of accounts at Larkhill. It said this was a rare occurrence and members’ savings are safe and guaranteed up to €100,000 by the Government.