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06/06/2002
Allfirst currency trader charged with bank fraud
John Rusnak, the currency trader at the centre of the Allfirst Financial scandal, has been charged with covering up $691 million (£475 million) trading losses to boost his own earnings.
A Federal Grand Jury in the US indicted Rusnak on charges of bank fraud, falsifying records, and for aiding and abetting. The indictment came after investigators completed a four-month examination of trading at Allfirst Financial, a subsidiary of the Allied Irish Banks (AIB), over a five-year period.
The investigation revealed that although the trader did not actually profit directly from the alleged deals, he nonetheless made it seem that the bank was profiting on currency transactions when this as not the case. Prosecutors said that the trader's actions had hidden losses and appeared to generate profits. As a result investigators calculated that Mr Rusnak had pocketed $850,000 in five years.
If convicted on all seven counts Mr Rusnak faces up to 30 years in jail, a $1 million fine, and five years probation on each count.
It is the biggest case of alleged fraudulent trading since British trader Nick Leeson brought down Barings Bank in 1995.
Since the revelations the management oversight practices at Allfirst were severely criticised in an internal report and to date six senior managers at the AIB's US subsidiary have been dismissed.
(SP)
A Federal Grand Jury in the US indicted Rusnak on charges of bank fraud, falsifying records, and for aiding and abetting. The indictment came after investigators completed a four-month examination of trading at Allfirst Financial, a subsidiary of the Allied Irish Banks (AIB), over a five-year period.
The investigation revealed that although the trader did not actually profit directly from the alleged deals, he nonetheless made it seem that the bank was profiting on currency transactions when this as not the case. Prosecutors said that the trader's actions had hidden losses and appeared to generate profits. As a result investigators calculated that Mr Rusnak had pocketed $850,000 in five years.
If convicted on all seven counts Mr Rusnak faces up to 30 years in jail, a $1 million fine, and five years probation on each count.
It is the biggest case of alleged fraudulent trading since British trader Nick Leeson brought down Barings Bank in 1995.
Since the revelations the management oversight practices at Allfirst were severely criticised in an internal report and to date six senior managers at the AIB's US subsidiary have been dismissed.
(SP)
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20 February 2002
Alleged AIB fraud started as far back as 1997
Allied Irish Banks (AIB) has revealed that the alleged fraud discovered earlier this month at its US subsidiary had been going on as far back as 1997. The news came as the bank reported its results for 2001 and finalised the losses it incurred as a result of the fraud at $691m.
Alleged AIB fraud started as far back as 1997
Allied Irish Banks (AIB) has revealed that the alleged fraud discovered earlier this month at its US subsidiary had been going on as far back as 1997. The news came as the bank reported its results for 2001 and finalised the losses it incurred as a result of the fraud at $691m.
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