Clients sue AIB over disclosure of information

AIB is being sued by two clients who are alleging the bank should not have disclosed information concerning their affairs.

The information is to be used by the Italian authorities in their inquiries into a pyramid selling scandal involving an entity called the Alpha Club. The identities of the clients are not known but it is understood they were clients of the AIB branch on Dame Street, Dublin.

Information was disclosed by AIB to the District Court last week in the course of an in camera hearing, the court was told yesterday.

A spokeswoman for the bank said it would not be commenting on the matter.

The disgruntled clients have initiated proceedings against the bank on the basis that a bank should keep its clients' banking details confidential unless told otherwise by the High Court.

The pyramid selling operation Alpha Club is or has been under investigation in the UK, Australia, New Zealand and Italy. According to its website, it has members in countries in Europe, north and south America, Africa and the Far East.

Alpha Club claims to have operations in 17 countries and is estimated to have collected fees worth €290 million. Its Portuguese operation is based in a hotel in that country run by controversial Irish businessman Mr John Carway.

The various Alpha operations around the world are in turn owned by Luxembourg-based Alpha Club International, the major shareholder in which is a Mr Dario Bellandi (60), who has an address in Turin in Italy. Mr Bellandi is a director of Alpha Club (UK), along with Mr Liam Purcell, with an address at Chiswick High Road, London. Mr Bellandi has denied he is involved in any fraud.

The UK branch of the so-called club recruited members who paid £2,650 (€3,860) to join and who were paid £450 for each new member they recruited. Members were offered discount travel deals which were often available free anyway.

Mr Carway came to the public's notice in the 1990s when he took control of CountyGlen, a shell company quoted on the Irish stock exchange. A High Court inspector found that he was central to a €1.27 million fraud at the company.

Mr Carway disputed the findings and a legal action for damages taken against Mr Carway by CountyGlen was later settled.