A retired Bank of Ireland senior executive has agreed with a suggestion that a former bank managing director accused of stealing more than €570,000 had “no option” but to resign following an internal investigation.
Liam McLoughlin, who was chief executive of Bank of Ireland’s Retail Ireland division, agreed with defence senior counsel Brendan Grehan SC that his client Brendan Mullin “really had no option” but to resign.
Mr Mullin (60) of Stillorgan Road, Donnybrook, Dublin 4, denies 15 theft, deception and false accounting charges, which are alleged to have occurred between July 2011 and March 2013.
In his opening address to Dublin Circuit Criminal Court this week, prosecuting counsel, Dominic McGinn SC told the jury this was a case of “financial dishonesty”..
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The prosecution alleges Mr Mullin, a former Ireland rugby international, authorised payments by the bank to solicitors McCann Fitzgerald, accounting firm Grant Thornton and accountants Beechwood Partners for work that was carried out either for Mr Mullin’s company, Quantum Investment Strategies, or for him personally.
Mr Mullin is also facing charges of false accounting in relation to invoices from McCann Fitzgerald and Beechwood Partners, which the prosecution alleges he had changed from being addressed to his home address to being addressed to the bank.
The prosecution further alleges Mr Mullin stole €500,000 from Bank of Ireland during a breakdown in communication within various entities of the banking group, in relation to a pay-out owed to some life assurance customers.
The jury was told double payments of €500,000 went to Bank of Ireland Private Bank due to a miscommunication and that against that background, Mr Mullin authorised a payment of €500,000 which was ultimately transferred to a company called Spice Holdings, registered in the British Virgin Islands.
The court has heard the sum of €500,000 was re-paid to Bank of Ireland Private Bank in July 2015 from Quantum. When questioned by gardaí, Mr Mullin said the payment of invoices arose out of “clerical mistakes” and that in relation to the €500,000, Spice Holdings was nothing to do with him.
The jury was told it would hear Mr Mullin’s explanation as to why the repayment of €500,000 came about in the course of the trial.
On Wednesday, Mr McLoughlin gave evidence that his remit included oversight of Bank of Ireland Private Bank, though Mr Mullin did not report to him directly. He said an issue involving Mr Mullin was brought to his attention in March 2013 and he directed an internal review.
Mr McLoughlin told Mr McGinn that he later asked internal audit to complete an investigation and separately, authorised Mr Mullin’s suspension in March 2013.
He said the role of private bank managing director is a regulatory “pre-approved control function” and in light of “serious and grave” concerns, it was “not appropriate for Mr Mullin to stay in situ”.
Under cross-examination, Mr McLoughlin agreed that he met Mr Mullin in early April 2013, and while he told him it was a serious matter, had no recollection of discussing any specifics. He accepted the defence’s suggestion that Mr Mullin did not want to be suspended.
Mr Grehan noted that group internal audit started an investigation and Mr Mullin resigned in July 2013. Mr McLoughlin agreed with Mr Grehan’s contention that his client “really had no option” but to resign.
Mr Mullin has pleaded not guilty to one count of stealing €500,000 from Bank of Ireland Private Bank, Mespil Road, Dublin 4 on December 16th, 2011, along with eight other counts of stealing various amounts of money amounting to just over €73,000 from the bank on various dates.
He has further pleaded not guilty to one count of deception and five counts of false accounting.
Mr Mullin was the managing director of Bank of Ireland Private Bank at the time of the alleged offences and he is a former rugby international who played for Ireland.
The trial continues before Judge Martin Nolan.
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