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17/01/2013
Property Fraudsters Jailed For Total Of 13 Years
Two London men have been sentenced to a total of 13 years for defrauding two banks of £61m.
44-year-old Achilleas Kallakis was given seven years, while Alexander Williams, also 44, five years.
The trial of the two men, which has taken four months to complete, heard that between 2003 and 2008 they duped the banks into lending them over £700m to buy properties and a super-yacht.
It is understood that in total they obtained £740m from AIB, supposedly for property deals, and £29m from Bank of Scotland to fund the conversion of a passenger ferry.
AIB ultimately recorded a loss of £56m and Bank of Scotland £5.8m.
Describing Kallakis as the “primer mover” in the fraud Judge Andrew Goymer added that the banks were also partly to blame for their losses.
"AIB and BoS have undoubtedly acted carelessly and imprudently by failing to make full inquiries before advancing the money," he told the court during sentencing.
"Indeed the latter bank was given clear and precise warnings by its lawyers about the risks of accepting assurances in a letter from an alleged co-conspirator, a Swiss lawyer.
"It almost beggars belief senior management chose to disregard that warning and rushed to complete the deal at all costs.
"It is apparent from the evidence both the defendants took full advantage of the prevailing banking culture in which corners are cut, and checks on them superficial and cursory," Judge Goymer concluded.
(H)
44-year-old Achilleas Kallakis was given seven years, while Alexander Williams, also 44, five years.
The trial of the two men, which has taken four months to complete, heard that between 2003 and 2008 they duped the banks into lending them over £700m to buy properties and a super-yacht.
It is understood that in total they obtained £740m from AIB, supposedly for property deals, and £29m from Bank of Scotland to fund the conversion of a passenger ferry.
AIB ultimately recorded a loss of £56m and Bank of Scotland £5.8m.
Describing Kallakis as the “primer mover” in the fraud Judge Andrew Goymer added that the banks were also partly to blame for their losses.
"AIB and BoS have undoubtedly acted carelessly and imprudently by failing to make full inquiries before advancing the money," he told the court during sentencing.
"Indeed the latter bank was given clear and precise warnings by its lawyers about the risks of accepting assurances in a letter from an alleged co-conspirator, a Swiss lawyer.
"It almost beggars belief senior management chose to disregard that warning and rushed to complete the deal at all costs.
"It is apparent from the evidence both the defendants took full advantage of the prevailing banking culture in which corners are cut, and checks on them superficial and cursory," Judge Goymer concluded.
(H)
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