ANGLO TO SET FRAUD SQUAD ON THE QUINNS

This article was first published in the Irish Mail on Sunday on 04/11/2012

By Michael O’Farrell

Investigations Editor

ANGLO Irish Bank is calling in the fraud squad to investigate the Quinn family’s attempts to asset-strip €500m, the Irish Mail on Sunday can reveal. Anglo has already held a meeting with senior members of the Fraud Squad to discuss what evidence might be required to support a fraud allegation.

Now a formal criminal complaint of fraud is expected to be made shortly – and is certain to spark a full-scale Garda inquiry. The news will come as a further blow to the family as Seán Quinn Sr spent this weekend getting used to his cell in Mountjoy Prison, where he is spending 63 days for contempt of court.

The prospect of a fraud inquiry will make his Christmas inside even bleaker. Anglo is obliged under the Criminal Justice Act 2010 to report any suspected crime to the authorities. The bank’s intention to make a formal complaint has been signalled by a change of language in its most recent court papers.

In his latest affidavit to the High Court on Thursday, executive Richard Woodhouse repeatedly described the manner in which assets were being moved as ‘fraudulent’. ‘IBRC has been met with fraudulent activity and delays which I believe to have been orchestrated by the defendants,’ he said.

During the recent meeting with gardaí, the bank was anxious to ensure that it was in a position to deal properly with any evidence of fraud it has uncovered as its investigators pursued the Quinns’ millions through Russia, Switzerland, Belize, Panama and the British Virgin Islands.

Following that initial meeting with gardaí, the bank has taken concrete steps to try to ensure that any evidence of fraud is preserved and handled in a manner that will stand up in court. Anglo has also asked its new Russian partner to preserve evidence relating to assets it is pursuing.

Under the agreement with the Alfa Group, which was detailed in the High Court this week, the specialist asset-recovery group must make any evidence of fraud available to the bank ‘promptly and in a manner which preserves its evidential integrity’. All such evidence will form a fraud dossier to be handed to gardaí.

It is likely that the Office of the Director of Corporate Enforcement will also be involved in any such case. Since it is a legal offence for any regulated institution to make public any suspected frauds that it reports to the Fraud Squad, Anglo last night refused to confirm or deny its dealings with gardaí.

But a spokesman issued a short statement: ‘The bank is a fully regulated entity and has an obligation to report any suspected matters of fraud to the relevant authorities. However, we cannot comment on any specific cases in that regard.’

While the Quinns deny any wrongdoing, if fraud charges are brought – and if anyone is convicted – they could carry lengthy prison sentences. For example, Paul Begley, who defrauded the Revenue of €1.6m by labelling imported garlic as apples received a six-year jail term. It is Anglo’s case that the Quinns have put €500m beyond the reach of a State-owned bank that the tax-payer has funded to the tune of €32bn.

Another consideration – especially for on-the-run Peter Quinn – is that any criminal charges would trigger an extradition request. At present Peter Quinn, the alleged mastermind of the asset-stripping scheme, is untouchable just across the Border in Co. Fermanagh despite the existence a warrant for his arrest for contempt.

ENDS