Gardai Moved in after Crucial Documents Were Put Up for Sale

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Byline: John Lee POLITICAL EDITOR

THE Financial Regulator has asked the Garda Fraud Squad to take over aspects of the investigation at Anglo Irish Bank after discovering that highly sensitive deeds and documents were not secure.

Gardai have confirmed that they have received allegations that individuals have attempted to sell high-security documents, proving the existence of loans, back to the multimillionaire borrowers.

If the alleged fraud had succeeded primary proof of multimillion-euro loans and the securities attached would have disappeared from the bank.

'There were suspicions that a person who had a loan of E20m had been offered the documents for E2m. The documents could then be destroyed and proof of the loan would disappear,' said a Government source.

In other banks such documents, which may include the deeds of properties, are typically kept off-site in secure locations.

It is understood the regulator's office believes some of the evidence and allegations it has discovered are beyond its remit.

Extraordinary allegations of financial malfeasance last week emerged from Anglo Irish Bank on foot of investigations by the Financial Regulator, the Office of Director of Corporate Enforcement and the Fraud Squad.

Government ministers said an absence of proper accounting jeopardised the security of loans at the now nationalised bank.

A fourth agency, the Garda National Bureau of Criminal Investigation (NBCI) is now understood to be involved in the investigation, such are the gravity of the allegations. …