Fraud Squad Seizes Docs Linked To The 450M Golden Cycle Loan In Ireland
Irish Fraud Squad detectives have nabbed documents that are related to the Euros 451 Million loan infamously known as the 'Golden Circle' Loans at the headquarters of the Anglo Irish Bank.
The Financial Regulator, which is over-seeing the separate investigation into matters at the bank, confirmed that it had uncovered serious matters that they are referring them to gardai. The material obtained by the detectives is also in relation to the exchange of Euros 7.45 Billion between Anglo Irish and Irish Life & Permanent.The disclosures have shown that the separate investigations by the Financial Regulator and Director of Corporate Enforcement were bearing fruits. After the bank was raided by the Fraud detectives, tight security was mounted to safe guard the documents while the detectives were examining them.Sources revealed that the main purpose of the initial searches was for the documentation of the 'golden circle' loans to see if they were in breach of Section 60 of the Companies Act. The section bars firms from giving loans to purchase their own shares unless if the money is part of ordinary business of that firm. Also under investigation are directors of the bank that acquired loans.It is alleged that Anglo Irish Bank loaned ?451 million to 10 customers so that they could buy 10 per cent of the bank, indirectly owned by a businessman Sean Quinn, to support its share price thus manipulating the market situation which is abuse of stock market regulations. The director of fraud investigation is investigating whether that amounted to market manipulation.Under the new European Union rules, market manipulation and insider dealings invite fines of up to Euros 10million and 10-year prison term if found guilty and convicted.For the Bank to give out a loan, it considered the ability of the person to repay, however the 'golden circle' did not follow this criteria, the only collateral that was put forward were the shares that were purchased, which are now virtually worthless. Legal and accounting sources stated that the Director of Corporate Enforcement and Financial Regulator will have to prove whether the loans were given under normal terms. Only 25% of the loans had collateral backing, and out of these only Euros 83million has been paid back, part of it believed to be from prior sale of the Anglo Irish bank shares before the nationalization.Meanwhile, the detectives are still investigating the secret loans to the bank's former chairman Sean Fitzpatrick, and his borrowings from the Irish Nationwide Building Society to conceal the loans. 15 directors have resigned from their board positions in the wake of the 'Golden circle scandal' among them Anne Heralty the former Anglo non executive director. The Government has sanctioned the Euros 500,000 contract that will see the beefing up of security at the office of Appleby, the Head Garda, on Parnell Square, Dublin due to his paramount role in the investigation of white collar crimes. About the Author:Thebestof is an Irish business directory which offers even greater insight and resources related to the Irish business world. Visit our Dublin north business directory to get business contact directly related to this area.
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