THE OFFICE of the Director of Corporate Enforcement is to continue using powers under the Criminal Justice Act 2011 to compel witnesses to disclose information in its lengthy investigation into Anglo Irish Bank.
Businessman Gerry Conlan was ordered by Naas District Court yesterday to provide documents and information about a substantial Anglo loan provided to him to buy shares in the bank in July 2008.
This is the first time that powers under the Criminal Justice Act were used since it became law on August 9th. The law strengthens Garda powers in investigations into white-collar crime and complex cases.
“Now that we have it, we are going to use it as and when we need to do so,” a spokesman for the ODCE said.
The pace of the investigations into Anglo, which are almost three years old, has been criticised. The ODCE said that it still expected its investigations to be complete or substantially complete by the end of the year.
Mr Conlan was one of the “Maple 10” investors assembled by Anglo to buy a shareholding of almost 10 per cent in the bank that was held by businessman Sean Quinn using loans from the bank.
The ODCE said a Garda detective inspector attached to it applied for an order under the Criminal Justice Act 2011 requiring Mr Conlan to produce documents and information relating to the Anglo share loan.
“Mr Conlan is a witness who had earlier declined to make himself available to the ODCE in its investigations of possible company law offences by Anglo and its officers,” it said.
Garda Insp Ray Kavanagh of the ODCE told the court that it sought the order for Mr Conlan to furnish documents and answer questions about the Maple 10 deal.
Barrister Paul Anthony McDermott, for the ODCE, said the statements and documents were of “great importance to the investigation into Anglo Irish Bank”. The court heard that Mr Conlan would comply with any order made. Mr Conlan declined to comment toThe Irish Times.
Granting the order, Judge Desmond Zaidan said: “I am satisfied that there are reasonable grounds to suspect Mr Conlan has in his possession or control documents.” He noted that Mr Conlan “is not being investigated as a suspect but is being treated as a witness”.
Mr Conlan, an investor in property and private hospitals who lives in Naas, has 21 days to comply.
Anglo, which is costing the Irish State €25-29 billion, provided about €450 million in loans to the 10 investors – about €45 million each – to buy the shareholding. The purpose was to avoid the stock being sold in the market, which would have led to a sharp fall in the share price, further destabilising Anglo.
The ODCE is investigating whether the bank and its officers broke company law by lending to investors to buy its own shares. It is also examining the loans to Anglo directors, including former chairman Seán FitzPatrick, and whether the bank broke EU transparency rules by making false financial statements.
The Garda Bureau of Fraud Investigation is examining the €7.2 billion in deposits from Irish Life Permanent used to make Anglo look healthier than it was.
