Court hears gardaí seized hundreds of thousands of Anglo documents

Conor Gallagher

The trial of three former Anglo Irish Bank executives has heard from the head of the garda investigation into the bank who described seizing hundreds of thousands of documents during a search of their offices.
Superintendent Eamon Keogh of the garda fraud squad is one of the final prosecution witnesses to be called. Another prosecution witness who gave evidence earlier in the trial is expected to be recalled later this week. The accused’s defence teams will then indicate whether they are going into evidence.
Supt Keogh, who was on secondment to the Office of the Director of Corporate Enforcement at the time, told prosecuting counsel Úna Ni Raifeartaigh SC that the first search of Anglo’s offices took 11 days to complete.
He said gardaí, including units from the Computer Crime Investigation Unit, searched the bank’s three premises at Stephen’s Court, Heritage House and Baggot Street. The first search lasted from February 23, 2009 to March 6, 2009.
Former Anglo chairman Sean FitzPatrick and fellow ex-directors William McAteer and Pat Whelan, are accused of providing funding for the purchase of Anglo’s own shares in contravention of the 1963 Companies Act.

Counts
The three men 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 Sean Quinn’s 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.
The Maple Ten transaction arose because of the need to unwind businessman Sean Quinn’s 29.4% control of the bank which was destabilising the Anglo share price.
Mr FitzPatrick (65) of Greystones, Co Wicklow, Mr McAteer (63) of Rathgar, Dublin and Mr Whelan (51) of Malahide, Dublin have pleaded not guilty to all charges.

Seized
Supt Keogh said that several hundred thousand paper documents were uncovered and seized during the searches. A similar number of digital documents were also downloaded from Anglo’s computers.
The superintendent told the jury that several thousand documents were also provided by the Financial Regulator and the Central Bank in connection with the investigation.
He said that these documents were the subject of “intense scrutiny” by investigators before being handed over to the defence teams.
Supt Keogh also confirmed that they uncovered a series of emails between Pat Whelan and the bank’s former CEO David Drumm. The emails show that Mr Drumm wanted Mr Whelan to convene to the Financial Regulator in a letter that “we are in this together” in relation to the Quinn issue.
This letter was signed by Mr Whelan and couriered to the Regulator on July 4, 2008.

Bridging loan
Supt Keogh also confirmed that William McAteer told a ratings agency at the end of July 2008 that €150m was lent to Mr Quinn as a bridging loan to “facility (sic) him” and was not “an overhang”.
“That money will be repaid next week,” Mr McAteer told the Standards and Poor Agency.
Earlier in the day the trial heard from banking expert Tom Reid. Mr Reid had previously told the jury that he believed several aspects of Anglo’s lending to the Maple Ten were abnormal, including the fact that they were only subject to 25% recourse on their €45 loans.
Today counsel for Mr McAteer, Patrick Gageby SC, put it to Mr Reid that Anglo was different to other banks because it mainly dealt with business customers.
Counsel suggested it was unfair to compare its dealings to those of more commercial banks. Mr Gageby said that Anglo had no ATMs and only one branch in Dublin.
Mr Reid responded that the principles of lending remain the same regardless of the bank. He repeated his point that if he was dealing with the loan himself he would have demanded 100% personal recourse.
The case continues on Friday before Judge Martin Nolan and a jury.