Former Anglo directors given community service

By Conor Gallagher


Two former directors of Anglo Irish Bank have been ordered to carry out 240 hours of community service for engaging in an illegal share support scheme.

Former Anglo director of finance William McAteer (63) and former head of Irish lending Pat Whelan (52) received their sentence just after 10.30am at Dublin Circuit Criminal Court.

Judge Martin Nolan had already indicated he didn’t intend to jail the men for their roles in the offence and had ordered they be assessed for the suitability to do community service

In a brief hearing today/yesterday (THURS) Judge Nolan was told by the men’s defence counsel that they are eligible for community service and have been co-operating with the Probation Service since their conviction.

The judge ordered them to carry out 240 hours of community service in lieu of a two year sentence. If they do not complete the community service within one year they will have to serve the prison term.

“Gentlemen enjoy your community service,” Judge Nolan told the men who smiled briefly as they left the court.

Whelan and McAteer had faced up to five years in prison under the legislation.

The men were convicted of breaching the Companies Act by illegally lending money to the Maple Ten group of investors so they could buy shares in Anglo. This was for the purpose of stabilising the bank’s plummeting share price.

Whelan of Malahide, Dublin, McAteer of Greenrath, Tipperary town, Co. Tipperary and Mr FitzPatrick from Greystones, Co Wicklow denied all charges against them.

On April 17 last, a jury found the two men guilty on ten charges each of breaching Section 60 of the Companies Act 1963 by lending money to the investors as part of 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 chairman Sean FitzPatrick was acquitted of all charges.

The trial heard a total of €450 million was illegally loaned to the Maple Ten while €160 million was loaned to Mr Quinn’s wife and five children.

During a sentencing hearing following the trial Judge Nolan said a serious crime had been committed but that it would be unjust to jail the men when they acted in the full belief that what they were doing was legal.

The judge said there he does not believe there was any greed or avarice on the part of the men and that if there had been he would have no difficulty in jailing them.

“It was a genuine if misguided attempt to save the bank. Nonetheless, it was against the law.”

During the hearing Judge Nolan also used his sentencing remarks to severely criticise Financial Regulator at the time, Pat Neary, which he said had considerably complicated the sentencing process.

He said the Financial Regulator “must have known” that Anglo intended at some stage to lend to investors as part of the scheme, and that it seemed “incredible” that the Regulator had not taken some advice on the legality of this.

Referring to the regulator, Mr Neary, and his second in command Con Horan, Judge Nolan said “I find it incredible that red lights didn't go off.”

He said that the regulator seemed more anxious to solve the problems at Anglo rather than ensure that the law was complied with.

He said their “overarching concern” was to save the bank and save the system, but that by not taking action and warning Anglo, they gave a green light to lending for the purpose of buying shares.

“Anyone in Anglo could have, and probably did, come to the conclusion that there was no legal bar to the bank lending for the purposes of acquiring its own shares,” he said. “I'm totally surprised that the Regulator did not give some warning to Anglo.”

He praised Mr Horan's testimony given in court, but noted Mr Neary's “limited recall” and “difficulty recalling vital events.”

Judge Nolan said he was not sure if the Regulator “didn't know” there was a breach of the Companies Act, or “chose to disregard it,” but he said he would give him benefit of the doubt.