Former currency trader John Rusnak has pleaded guilty - as expected - to bank fraud in the $692 million trading scandal that rocked AIB earlier this year.
Rusnak, who worked for AIB's Baltimore-based US subsidiary, Allfirst, pleaded guilty to one count of bank fraud for executing a scheme that defrauded AIB and Allfirst over a five year span.
Appearing before a US district judge, Rusnak agreed to a prison term of seven and a half years, followed by five years of supervised release, in return for his assistance in the ongoing criminal investigation to look into the possible involvement by others in the alleged fraud.
Rusnak is also barred from serving as an officer, director or employee of any federally insured bank. He is also likely to be required to pay restitution. The plea bargain specifically states that he agrees to being responsible for trading losses at Allfirst.
A tentative date of January 17 has been set for sentencing.
In June, Rusnak entered an initial not-guilty plea to a seven-count federal fraud indictment by a grand jury that said his illicit activities were aimed at winning salary and bonuses totaling $850,000 from 1997 to 2001. He was not accused of profiting directly from the alleged fraud.
Shares in AIB closed seven cent higher at €13.10 this evening in Dublin.
