26/03/2009
Investigation Launched Into AIB 'Property Scam'
The UK's Serious Fraud Office (SFO) has confirmed it is launching an investigation into an alleged £56 million property scam.
The SFO has revealed that between 2003 and 2007 Allied Irish Bank (AIB) provided loans for the purchase of a number of UK investment properties to companies controlled by an individual who is a major suspect in the investigation.
Yesterday the SFO and City of London Police raided three businesses and residential addresses in central London. No arrests have been made.
The alleged fraud involved borrower companies creating "overriding" leases involving the investment grade counterparty. These leases were generally for longer periods and at higher rents than the existing occupational tenants' leases.
The apparent existence of these additional leases increased the values of the properties, with lease payments being a direct obligation of the investment grade counterparty.
The investment grade counterparty has since indicated to AIB that the overriding leases are fraudulent.
AIB is considering legal action against a "number of parties" in respect of its deficit.
AIB, which refused to give further details said: "AIB identified the issue and referred it to the appropriate authorities. The writedown was fully accounted for in our 2008 results.
"We cannot comment further on the investigation at this stage."
The SFO has warned that further financial institutions may also have been deceived by the suspects.
(JM/BMcC)
The SFO has revealed that between 2003 and 2007 Allied Irish Bank (AIB) provided loans for the purchase of a number of UK investment properties to companies controlled by an individual who is a major suspect in the investigation.
Yesterday the SFO and City of London Police raided three businesses and residential addresses in central London. No arrests have been made.
The alleged fraud involved borrower companies creating "overriding" leases involving the investment grade counterparty. These leases were generally for longer periods and at higher rents than the existing occupational tenants' leases.
The apparent existence of these additional leases increased the values of the properties, with lease payments being a direct obligation of the investment grade counterparty.
The investment grade counterparty has since indicated to AIB that the overriding leases are fraudulent.
AIB is considering legal action against a "number of parties" in respect of its deficit.
AIB, which refused to give further details said: "AIB identified the issue and referred it to the appropriate authorities. The writedown was fully accounted for in our 2008 results.
"We cannot comment further on the investigation at this stage."
The SFO has warned that further financial institutions may also have been deceived by the suspects.
(JM/BMcC)
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AIB returned to full-year profit in 2014, announcing €1.1bn profit for the year, compared with a loss of €1.7bn in 2013. This return, according to the Department of Finance, will amount to €20.8bn investment for the taxpayer over time.
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AIB returned to full-year profit in 2014, announcing €1.1bn profit for the year, compared with a loss of €1.7bn in 2013. This return, according to the Department of Finance, will amount to €20.8bn investment for the taxpayer over time.
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SIPTU Condemns Govt Decision To Sell AIB Shares
The Government's decision to sell a 25% stake in its holdings in AIB has been described as "absolutely indefensible" by SIPTU President Jack O'Connor. In a statement from the union, Mr O'Connor said that the sale was undemocratic and in direct contravention of a resolution of the Oireachtas.
SIPTU Condemns Govt Decision To Sell AIB Shares
The Government's decision to sell a 25% stake in its holdings in AIB has been described as "absolutely indefensible" by SIPTU President Jack O'Connor. In a statement from the union, Mr O'Connor said that the sale was undemocratic and in direct contravention of a resolution of the Oireachtas.
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AIB Confirms Job Losses
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AIB To Outsource 170 Jobs
AIB has said it plans to outsource 170 IT jobs in Dublin. According to reports, the jobs will be to three different companies. The positions are understood to be going to Eircom, Integrity and Wipro. A process of consultation between the bank and its employees will now commence, but it is thought no staff will be made redundant as part of the move.
AIB To Outsource 170 Jobs
AIB has said it plans to outsource 170 IT jobs in Dublin. According to reports, the jobs will be to three different companies. The positions are understood to be going to Eircom, Integrity and Wipro. A process of consultation between the bank and its employees will now commence, but it is thought no staff will be made redundant as part of the move.
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Goldman Sachs Appointed To AIB
Goldman Sachs International has been appointed as the financial advisor for capital restructuring in relation to State investment in AIB, the Department of Finance has said. The appointment was made following a mini tender competition in December that involved all members of Panel 1 of the Department's financial advisory panels.
Goldman Sachs Appointed To AIB
Goldman Sachs International has been appointed as the financial advisor for capital restructuring in relation to State investment in AIB, the Department of Finance has said. The appointment was made following a mini tender competition in December that involved all members of Panel 1 of the Department's financial advisory panels.
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