A FORMER bank manager was charged yesterday with a £7 million fraud and money-laundering operation. Peter Creegan (43), from Tullydonnell Road, Silverbridge, Co Armagh, was accused of defrauding the First Trust Bank.
He appeared at Armagh Magistrates’ Court alongside former Halifax employee Damien Pius Mallon (52), from Drumconwell Road, Armagh, who is also accused of conspiring with him to fraudulently obtain money.
A detective constable told the court: “There are other individuals, witnesses and others who the police seek to interview. It is not likely that it will last several months but certainly some weeks are required.
“Police have received a complaint from the First Trust Bank and a third party in respect of an initial complaint of £3.4 million and €3.9 million, and that figure escalates at the moment.”
Mr Creegan was charged with making false representation to cause loss to the First Trust Bank, entering into an unlawful arrangement to acquire criminal property.
He also allegedly conspired with Mr Mallon to cheat and defraud and apply for a loan using false identity.
The alleged offences happened between 2006 and this year. Mr Creegan worked at the First Trust for 24 years but lost his job at the start of this year.
The detective constable added: “Interviews of Mr Creegan would indicate other matters which I prefer to withhold at this particular moment with a direct linkage to the investigation.”
Mr Mallon, who has also worked as a financial adviser, was in charge of Halifax branches in Dungannon, Co Tyrone, and Keady, Co Armagh. His charges span the years from 2002 to 2009.
He is accused of fraudulently opening a bank account to make gain for himself or another to cause loss to the Halifax. He is also alleged to have converted criminal property and entered into an arrangement allowing the acquisition of criminal property.
Neither man responded when the charges were read out before judge Paul Copeland. He is to rule on their bail applications today and they were remanded in custody.
Police said there was a fear of them absconding given the large sums of money involved, and a risk to witnesses if they were released.
Paul Downey, solicitor for Mr Mallon, told the court his client had been suspended by the Financial Services Authority.
“Mr Mallon has made full and frank admissions...some 18 tape recorded interviews. It is fair to say that it would be pointless for Mr Mallon to now attempt to contact any potential witness.”
He said there were 3,320 new accounts opened by the defendant in the last four years, and warned it would take police a considerable amount of time to locate them. His client’s passport had been taken by police.
Mr Creegan’s solicitor, Ciaran Rafferty, accepted they were grave matters, but said bail could be granted even for those charged with murder.
He said his client, whose passport he claimed had been taken by police, had a property in Omeath, Co Louth, but had important family connections dating back generations in Northern Ireland. Extradition arrangements meant the Republic was not a safe haven for fugitives. “The scale is tipped in favour of admitting my client to bail,” he said. – (PA)