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06/02/2002
FBI called in as AIB Group's US subsidiary loses $750M
The trader who is at the centre of a $750 million fraud at Allied Irish Banks' US subsidiary has voluntarily met with the FBI.
John Rusnak, who was earlier thought to be on the run had, according to his lawyers been staying with his family in Baltimore.
The FBI were called in to investigate the massive fraud after one of its foreign exchange traders failed to turn up for work and it was noticed $750 million (£529 million) was unaccounted for.
Mr Rusnak's lawyers have denied that the 37-year-old father of two has stolen any money from his employers.
This latest turn in events comes after AIB announced they were launching "a full investigation" in cooperation with the FBI following the revelation that millions of dollars had been siphoned from the Baltimore headquarters of the corporation's US subsidiary - Allfirst.
Speaking on Wednesday Group chief executive Michael Buckley said: "We are hugely disappointed that our Allfirst control procedures failed to uncover this situation at an earlier stage. The Group’s underlying business and profitability momentum is not impaired by this once-off blow. Our capital adequacy continues to be strong."
John Rusnak, the alleged author of this "complex" fraud was at work on Friday February 1 and had been with the company for seven years. He is described as a US passport holder in his 40s, married with two children and was said to be in an $85,000-a-year post.
The fraud is not expected to have any long-term effects on the group, which had anticipated almost €1.5 billion pre-audit profits. But investigators will be asking Allfirst Treasury why control procedures designed to net this kind of fraud failed to prevent $750 million (£529 million) disappearing from the company's books.
The executive vice president and treasurer of Allfirst, two senior vice presidents and two other staff members have been suspended pending completion of the investigation.
Allfirst is one of the top 50 banks in America and has about 250 branches, outlets and banking facilities, and the AIB USA division employs over 6000 people.
(GMcG)
John Rusnak, who was earlier thought to be on the run had, according to his lawyers been staying with his family in Baltimore.
The FBI were called in to investigate the massive fraud after one of its foreign exchange traders failed to turn up for work and it was noticed $750 million (£529 million) was unaccounted for.
Mr Rusnak's lawyers have denied that the 37-year-old father of two has stolen any money from his employers.
This latest turn in events comes after AIB announced they were launching "a full investigation" in cooperation with the FBI following the revelation that millions of dollars had been siphoned from the Baltimore headquarters of the corporation's US subsidiary - Allfirst.
Speaking on Wednesday Group chief executive Michael Buckley said: "We are hugely disappointed that our Allfirst control procedures failed to uncover this situation at an earlier stage. The Group’s underlying business and profitability momentum is not impaired by this once-off blow. Our capital adequacy continues to be strong."
John Rusnak, the alleged author of this "complex" fraud was at work on Friday February 1 and had been with the company for seven years. He is described as a US passport holder in his 40s, married with two children and was said to be in an $85,000-a-year post.
The fraud is not expected to have any long-term effects on the group, which had anticipated almost €1.5 billion pre-audit profits. But investigators will be asking Allfirst Treasury why control procedures designed to net this kind of fraud failed to prevent $750 million (£529 million) disappearing from the company's books.
The executive vice president and treasurer of Allfirst, two senior vice presidents and two other staff members have been suspended pending completion of the investigation.
Allfirst is one of the top 50 banks in America and has about 250 branches, outlets and banking facilities, and the AIB USA division employs over 6000 people.
(GMcG)
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26 September 2002
AIB to sell bank at centre of Rusnak fraud scandal
It has been reported that the Allied Irish Bank (AIB) is on the verge of selling its scandal-hit subsidiary Allfirst to an American rival. Reuters has reported that M&T Bank Corp will take on Allfirst for around $3 billion in cash and stock.
AIB to sell bank at centre of Rusnak fraud scandal
It has been reported that the Allied Irish Bank (AIB) is on the verge of selling its scandal-hit subsidiary Allfirst to an American rival. Reuters has reported that M&T Bank Corp will take on Allfirst for around $3 billion in cash and stock.
06 June 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.
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.
31 January 2005
Rising fraud spirits away millions from UK businesses
The total number of fraud cases in the UK rose by 14% in 2004, according to latest figures from KPMG’s 'Fraud Barometer', but the overall value of frauds being committed fell by 12%.
Rising fraud spirits away millions from UK businesses
The total number of fraud cases in the UK rose by 14% in 2004, according to latest figures from KPMG’s 'Fraud Barometer', but the overall value of frauds being committed fell by 12%.
25 June 2003
Serious Fraud Office investigates major insurance scam
The Serious Fraud Office (SFO) in conjunction with the PSNI have revealed that around 1,000 local businesses have been affected by a multi-million pund insurance scam. The investigation centres on a number of insurance brokers based in England and one operating in Northern Ireland.
Serious Fraud Office investigates major insurance scam
The Serious Fraud Office (SFO) in conjunction with the PSNI have revealed that around 1,000 local businesses have been affected by a multi-million pund insurance scam. The investigation centres on a number of insurance brokers based in England and one operating in Northern Ireland.
02 August 2016
Cyber Security Briefing To Advise Businesses On How To Stay Safe Online
A free cyber security event is to be held in Belfast to advise businesses how to make themselves more secure. While advances in information technology fuel growth and transform how businesses operate, these advances "come at a cost", with cyber criminals actively using technology to commit crimes including fraud and extortion.
Cyber Security Briefing To Advise Businesses On How To Stay Safe Online
A free cyber security event is to be held in Belfast to advise businesses how to make themselves more secure. While advances in information technology fuel growth and transform how businesses operate, these advances "come at a cost", with cyber criminals actively using technology to commit crimes including fraud and extortion.
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