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25/10/2002
AIB fraudster jailed for seven years
A former currency trader has been jailed for seven years for his part in one of the largest bank frauds in history.
John Rusnak pleaded guilty to bank fraud over the trading scam that cost Allied Irish Banks (AIB) nearly $700 million in trading losses.
Rusnak was found guilty of fraudulently running up losses of $692 million – about £445 million – over a five-year period while working at Allfirst Financial, a US subsidiary of AIB.
He pleaded guilty to one count of bank fraud and agreed to a reduced sentence in return for helping the investigation into whether other people were involved in the scandal.
Rusnak will also serve a five-year probation term for the crime which ranks up alongside the 1995 collapse of Barings Bank at the hands of rogue trader Nick Leeson.
Rusnak had originally pleaded not guilty to seven counts of fraud in June. If found guilty after a trial he would have faced a maximum sentence of 30 years in prison and $1 million in fines.
Last month AIB agreed to sell Allfirst to the regional US bank M&T Corporation in a deal worth $3.1 billion.
Under the terms of the deal, AIB will retain a 22.5% stake in the bank.
(MB)
John Rusnak pleaded guilty to bank fraud over the trading scam that cost Allied Irish Banks (AIB) nearly $700 million in trading losses.
Rusnak was found guilty of fraudulently running up losses of $692 million – about £445 million – over a five-year period while working at Allfirst Financial, a US subsidiary of AIB.
He pleaded guilty to one count of bank fraud and agreed to a reduced sentence in return for helping the investigation into whether other people were involved in the scandal.
Rusnak will also serve a five-year probation term for the crime which ranks up alongside the 1995 collapse of Barings Bank at the hands of rogue trader Nick Leeson.
Rusnak had originally pleaded not guilty to seven counts of fraud in June. If found guilty after a trial he would have faced a maximum sentence of 30 years in prison and $1 million in fines.
Last month AIB agreed to sell Allfirst to the regional US bank M&T Corporation in a deal worth $3.1 billion.
Under the terms of the deal, AIB will retain a 22.5% stake in the bank.
(MB)
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