Courts / Wicklow / Report

Former Anglo official "surprised" external auditors never queried refinancing of bank's loans, court hears

Date
2017-01-16
Stage
Trial
Primary locality
Wicklow
County
Wicklow

Summary

Sean FitzPatrick, 68, of Greystones, Co Wicklow, is on trial at Dublin Circuit Criminal Court, where he has pleaded not guilty to 27 alleged offences under the 1990 Companies Act. The State alleges he failed to disclose the extent of multi-million euro loans linked to him between 2002 and 2007, including 22 charges of making misleading statements to auditors and five charges of furnishing false information. Testimony from former Anglo Irish Bank financial controller Cyril Boyd stated he was surprised external auditors never queried the annual refinancing of FitzPatrick's loans using funds from Irish Nationwide Building Society (INBS). Boyd described the practice as common knowledge, noting that quarterly reports to the Central Bank disclosed total director loans, which would show a drop in the final quarter when refinancing occurred. The prosecution contends the loan amounts were artificially reduced for two weeks around the financial year-end. Witness Alan Dukes testified that FitzPatrick told the board in December 2008 he was resigning principally over the loan refinancing issue, claiming the loans were on commercial terms. Former INBS chairman Michael Walsh stated the refinancing was good business and that INBS reported the loans to the financial regulator. The trial is ongoing.

Who, what, where, when and why

What: Report matter: Former Anglo official "surprised" external auditors never queried refinancing of bank's loans, court hears. Charges or matters: 27 offences under the 1990 Companies Act. Procedural stage: trial

When:

Why: " He asked Mr FitzPatrick for a reason for the significant increase. CNI source report

Case subjects

Sean FitzPatrick

Defendant

Charges: 27 offences under the 1990 Companies Act (Alleged Or Contested)

Plea: Not guilty

Places mentioned

Court Venue
  • Dublin
  • Dublin Circuit Criminal Court
Residence

Topics

Stage Trial

Related court reports

Read the original CNI report

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