The trial of a former managing director accused of stealing over €570,000 from Bank of Ireland Private Bank has heard that the bank wrote to other institutions asking for more information about a transfer of €500,000 made in December 2011.
Brendan Mullin (60), who is accused of stealing over €570,000 from Bank of Ireland Private Bank among other charges, denies all 15 charges against him.
As part of its case against him, the prosecution alleges Mr Mullin, of Stillorgan Road, Donnybrook, Dublin 4, authorised payments by the bank to solicitors McCann Fitzgerald, Beechwood Partners accountants and Grant Thornton for work carried out either for his company, Quantum Investment Strategies, or for him personally.
The prosecution further alleges Mr Mullin stole €500,000 from Bank of Ireland during a breakdown in communication within various entities of the banking group, with the money ultimately transferred to a company called Spice Holdings, registered in the British Virgin Islands.
Christopher Kitson, senior legal counsel with Northern Trust, gave evidence on Wednesday that it inherited a custodian agreement with Spice Holdings as part of its acquisition of Bank of Ireland Security in May 2011.
He explained a custodian agreement involves the safekeeping of company's assets.
The court was shown bank records relating to the transfer of €500,000 to Northern Trust in December 2011, and documents showing the registration of Spice Holdings in the British Virgin Islands.
Six months later, in June 2012, €500,000 was transferred into another account in the name of Spice Holdings, held by Royal Bank of Canada in Jersey.
Mr Kitson agreed with Brendan Grehan SC, defending, that the registration documents for Spice Holdings state it was incorporated in 1997.
Sean O'Murchú told Dominic McGinn SC, prosecuting, that he was appointed interim head of Bank of Ireland Private Bank after Mr Mullin stood aside in April 2013.
Mr O'Murchú confirmed Bank of Ireland Private Bank wrote separately to Northern Trust and Spice Holdings in October 2012 asking about the €500,000 payment made in December 2011.
He confirmed to Mr McGinn that the bank was seeking to confirm the reasons for this payment. He agreed that the letter stated the bank would look for the money to be repaid unless “appropriate” commercial reasons were provided.
Mr O'Murchú agreed Northern Trust replied the following month and attached a copy of the payment instructions for the €500,000 transfer made in June 2012.
Royal Bank of Canada also replied on behalf of Spice Holdings to acknowledge receipt of the letter.
Mr O'Murchú agreed with prosecuting counsel that neither institution provided an answer to the bank's query.
The witness told Mr Grehan that these letters were prepared by audit, which he reviewed and signed.
Terry McCarron, chief financial officer at Grant Thornton, gave evidence about three invoices totalling €5,596 sent to Quantum Investment Capital. The court heard that Grant Thornton provided professional services to Quantum and BJM Nominees.
Two of these invoices included Bank of Ireland Private Bank's address, while the third had a different address. Mr McCarron confirmed the invoices were paid in full.
The jury were also shown current account statements for Quantum. Former AIB employee Sinead Mooney gave evidence that the statement showed a payment of €650,000 to this account on July 20th, 2015 from Shields Martin Thomas with the reference 'Brendan M loan'.
The following day, there were two transfers from the account – one for €150,000 and a second for €500,000 to O'Mara Geraghty MCC.
Mr McGinn took Ms Mooney through other bank records in relation to these transfers.
Under cross-examination from Mr Grehan, Ms Mooney said she didn't know if the reference related to a director loan.
Earlier, Matt Jones, a partner in Beechwood Partners chartered accountants, gave evidence about an invoice for €6,150 which was sent to Mr Mullin on February 3, 2012. The accountancy firm did work for Mr Mullin in relation to his personal finance and tax returns, the court heard.
The court was shown an email from the company's financial administrator outlining how she had spoken to Mr Mullin and he asked that the invoice address be changed from his home address to Bank of Ireland Private Bank.
This change was made, the invoice was sent to Bank of Ireland and paid later that month, the court heard.
Under cross-examination from Edward Doocey BL, defending, Mr Jones agreed the bill was paid for by Bank of Ireland, “as it transpires”. He said he was first informed of this in 2020 and that Bank of Ireland has never contacted the company or asked that the money be repaid.
Mr Mullin has pleaded not guilty to one count of stealing €500,000 from Bank of Ireland (BOI) Private Bank, Mespil Road, Dublin 4 on December 16th, 2011, along with eight other counts of stealing various amounts of money amounting to just over €73,000 from the bank on various dates.
He has further pleaded not guilty to one count of deception and five counts of false accounting. All of the offences are alleged to have occurred between July 2011 and March 2013.
Mr Mullin was the managing director of BOI Private Bank at the time of the alleged offences and he is a former rugby international who played for Ireland.
The trial continues.
