Former trader Rusnak jailed for seven years

Former currency trader John Rusnak was sentenced to seven-and-a-half years in prison by a Baltimore court yesterday for hiding…

Former currency trader John Rusnak was sentenced to seven-and-a-half years in prison by a Baltimore court yesterday for hiding more than $691.2 million (€648.4 million) in losses at AIB-owned Allfirst Bank.

He was also ordered to pay restitution at the rate of $1,000 a month for five years after his release.

In a plea bargain in October Rusnak agreed to plead guilty to a single count of bank fraud and accept a sentence of 90 months without parole. A further six charges, including bank fraud and making false entries, were dropped.

After his release from prison, Rusnak will remain on five years' probation. He was barred by US District Court Judge William Nickerson from working at a bank or other federally insured financial institutions.

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Judge Nickerson said he believed it was the harshest sentence ever imposed in a fraud case in the Baltimore courthouse.