Anglo executives McAteer and Whelan charged over alleged €8m fraud

Two former Anglo Irish Bank executive directors have appeared in court on charges connected to the alleged fraudulent securing of a loan of €8.2 million.

Former finance director Willie McAteer (63) and Patrick Whelan (53) were both charged with one count each of breaching the Companies Act at their former bank which is now in liquidation.

They were arrested by arrangement this morning and brought before court number 2 at the Courts of Criminal Justice.

They are charged with one count each of the offence of “fraudulent trading” contrary to section 297 of the Companies Act 1963.

Judge John O’Neill granted bail before adjourning the case. A book of evidence will now be prepared.

Mr McAteer has an address of Green Rath, Tipperary Town while Mr Whelan has an address at Coast Road, Malahide, Co Dublin.

The charge against Mr McAteer is that on September 29th, 2008 he was “knowingly a party to the carrying on of the business of a company, for a fraudulent purpose.”

This was the granting by Anglo Irish Bank of an €8.2 million loan to Mr McAteer secured only on his shares in the bank. This Anglo loan was used to pay off a loan to Bank of Ireland for which he was personally liable.

It is alleged according to the charge that this “caused a gain to William McAteer and, a loss to the said bank.”

Mr Whelan, who was a senior executive director in Anglo Irish Bank at the time, faced the same charge.

The manner in which Mr McAteer borrowed €8.2 million originally has been known to be the subject of an investigation by the Garda fraud squad and the Office of the Director of Corporate Enforcement since 2010.

The men made no comment during the brief hearing.

The case has been adjourned and the men remanded on bail until November 3rd.