ULSTER BANK is seeking to recover €13.5 million in loans due from former chief executive of Irish Nationwide Building Society Michael Fingleton, Fianna Fáil Senator Francie O’Brien, and two Monaghan property developers in a High Court action on Monday.
The bank has issued legal proceedings against Mr Fingleton, Mr O’Brien, Charles McGuinness and Noel Mulligan over loans provided for land speculation in the Cavan-Monaghan border region.
The bank will apply on Monday to enter the case into the list of the Commercial Court – the division of the High Court which deals with business disputes involving sums of more than €1 million – where it can receive a fast-tracked hearing.
Calls to the mobile phones of Mr Fingleton and Mr O’Brien were not returned, while Mr Mulligan and Mr McGuinness could not be reached. Ulster Bank had no comment to make.
Mr Fingleton is being defended by law firm Alfred Thornton, which is based in Dún Laoghaire near his home in Shankill, south Co Dublin. The solicitors are on a panel of 64 firms which provide legal services relating to the purchase of loans by the National Asset Management Agency.
Mr O’Brien and Mr McGuinness are being represented by Mallons solicitors in Castleblayney, Co Monaghan. Mr Mulligan’s solicitors are Shane Kennedy Company, based in Monaghan town.
Ulster Bank Ireland issued the legal proceedings last July. Ulster Bank executive Ted Mahon has sworn an affidavit in the action.
Francis “Francie” O’Brien, a dairy farmer by profession, has been a Senator since 1989 and was elected from the agricultural panel. He was a member of Monaghan County Council from 1979 until 2003 and chairman of the council from 1986 to 1987.
He owns a large amount of property in Cavan and Monaghan.
Separate to his loans at Ulster Bank with Mr Fingleton and the two developers, the Senator has borrowed heavily from Irish Nationwide, which Mr Fingleton ran for 38 years until last year.
Many of the loans were personally agreed by Mr Fingleton on a fast-tracked basis where “affordability was not established as no income details were submitted”, according to sources familiar with the society’s lending practices.
Irish Nationwide is moving €8.5 billion of loans – about 80 per cent of its overall book – to Nama which was set up by the Government to take toxic loans out of the banks.
Mr O’Brien borrowed €4.47 million from Irish Nationwide to buy 17 acres of agricultural land at Inniskeen in Co Monaghan in 2006. Mr Fingleton agreed to the loans.
The land was purchased several months before a Monaghan County Council vote on the rezoning of the land, which failed to pass due to local opposition. Several Fianna Fáil councillors voted to rezone the land. Mr O’Brien’s son, Fianna Fáil councillor John O’Brien, declared his interest and abstained from the vote.
Irish Nationwide has also provided loans to Mr O’Brien to purchase land at Stradone in Co Cavan and 41 acres of agricultural land at Latton in Co Monaghan. He also owns houses and apartments bought with loans from the building society.
Mr Mulligan appealed to An Bord Pleanála in 2006 to build 433 houses and apartments outside Cavan town after the council refused planning permission.
