Anglo solicitor unaware of lending to developers to buy sharesMonday 28 April 2014 22.33
The solicitor advising Anglo Irish Bank in July 2008 has said he did not know the bank was lending money to ten developers to buy shares in the bank at the time he was advising Anglo.
Robert Herron said he did not give positive legal advice about the transaction at the centre of the criminal proceedings against former executives of the bank.
He said his legal advice did not cover the ten developers known as the Maple Ten as he did not know there was any lending by the bank to them.
Two former directors of the bank, Patrick Whelan and William McAteer are due to be sentenced for giving illegal loans to the Maple ten in breach of Section 60 of the Companies Act.
Mr Herron, who worked for Matheson, Ormsby and Prentice solicitors, has been called by the prosecution to give evidence at the sentencing hearing on the issue of legal advice and its role in mitigation.
Prosecuting lawyer, Paul O'Higgins said the State was saying there was significant evidence that there was no legal advice at all about whether the lending to the Maple ten was lawful and he said this was surely significant.
Defence lawyers said the two men were told by others in the bank that there was positive legal advice about the transaction and it was their state of mind that was relevant.
Mr Herron told the court that he had no knowledge that there was any lending to the Maple ten while the transaction was being executed.
He said he was made aware there would be lending to members of the Quinn family.
He said he told the bank that this could fall within the exemption in the legislation which allows a bank to lend money to buy its own shares provided it is in the ordinary course of the bank's business.
He said he could not recall the details of a call he was involved in on July 12th 2008, with investment bank Morgan Stanley and Anglo officials.
The court heard the only written document which exists relating to the legal advice is a document dated 22 July 2008, more than a week after the transaction went through.