Nine former National Irish Bank (NIB) executives criticised by a High Court investigation into practices at the bank are facing disqualification proceedings.
The Office of the Director of Corporate Enforcement (ODCE) today issued a statement saying it had begun the action against managers criticised in a report submitted to Justice Peter Kelly last July.
The investigation found overcharging and the sale of financial products that aid tax evasion. The inspectors found branch managers played a role facilitating tax evasion and overcharging but said the policies were driven by "higher management".
Chief Executive at the time Jim Lacey is among the nine former executives being pursued by the ODCE.
If the proceedings taken under Section 160 of the Companies Act (1990) succeed, the men could face disqualification from holding positions as company directors or secretaries.
Director of Corporate Enforcement Paul Appleby today said: "It will be a matter for the High Court to determine in due course if disqualification is appropriate in each case.
The nine men are:
- Jim Lacey, former chief executive, NIB;
- Barry Seymour, former executive director, NIB;
- Frank Brennan, former general manager - retail banking, NIB, and other titles;
- Michael Keane, former general manager - banking, NIB, and other titles;
- Dermott Boner, former head of retail, NIB, and other titles;
- Kevin Curran, former head of retail banking, NIB, and other titles;
- Tom McMenamin, a former regional manager, NIB, and other titles;
- Patrick Byrne, former head of finance, NIB, and
- Nigel D'Arcy, former head of the financial advice and services division, NIB.
The High Court inspectors' report published last July found NIB facilitated tax evasion through the use of bogus non-resident accounts, fictitious accounts and offshore investments over a ten-year period.
The 192-page document took six years to compile and named 19 people including Independent TD Beverly Cooper-Flynn. Ms Flynn, a former member of Fianna Fáil, is not subject to the proceedings formally confirmed today.
The report also found that NIB had also improperly charged interest and other fees to customers and improperly debited accounts .
The investigation, which started in 1988, examined the retail arm of the bank and later extended its inquiries to include National Irish Bank Financial Services.