UK: AIB fraud accused took staff on junkets, court told
Senior AIB (Allied Irish Banks) staff were treated to a series of junkets -- including a yacht trip in Monte Carlo, a party in St Petersburg and a weekend excursion to Mauritius -- by a businessman accused of masterminding a €920m fraud against the bank.
A former staff member of the London office of the bank yesterday told a court how he and other bankers had been entertained by Achilleas Kallakis, who is accused -- along with his business partner -- of using forged documents to secure loans from the bank.
Michael Cooke, a member of the lending team which dealt with Mr Kallakis, said he had visited him on his yacht in Monte Carlo while on his way to a property conference in Cannes. He had also gone to Mauritius for the weekend with other members of the team after an invitation from the businessman at the end of a deal.
On another occasion, Mr Kallakis chartered a plane to fly 200 people to a "big do" in St Petersburg but Mr Cooke, who went with his wife, said he paid for his own airfare and accommodation.
Mr Cooke yesterday told Southwark Crown Court that "in some ways" they were "encouraged to go" on such trips by AIB. Mr Kallakis and his business partner Alexander Williams deny 23 charges of fraud and money laundering relating to 16 property deals between 2003 and 2008.
They are charged with orchestrating a scheme in which faked guarantees from a reputable Hong Kong property company were used to secure the loans which were worth €920m in total.
AIB lost millions of euro as a result of the alleged fraud. The properties were sold off discreetly to the Green Property Group in late 2008, shortly after the bank guarantee had been announced.
The loans were used to fund Mr Kallakis' "extravagant lifestyle", the court has heard.
Yesterday, Mr Cooke -- who is now the director of a residential land company -- said the level of entertainment which was provided was appropriate for the custom the bank had with Mr Kallakis for a number of years.
By the end of the loans period, in 2008, Mr Kallakis was one of the bank's largest clients.
All of the trips were registered and signed off by the bank, Mr Cooke said, which was in line with the rules.
On another occasion, he had been invited to go on Mr Kallakis' yacht for the Monaco Grand Prix but did not do so.
The pair are accused of forging rent guarantees from the listed Hong Kong property company -- Sun Hung Kai Properties (SHKP) -- to secure the loans between 2003 and 2008. Yesterday, Mr Cooke said he had built up a friendly business relationship with Mr Kallakis, and understood him to be connected with a larger Greek shipping business.
The accused had "nice offices, nice house, nice car", was "clearly a man of means" and appeared as a "man of integrity" said Mr Cooke.
The case is due to continue today.
Sourc: Independent
A former staff member of the London office of the bank yesterday told a court how he and other bankers had been entertained by Achilleas Kallakis, who is accused -- along with his business partner -- of using forged documents to secure loans from the bank.
Michael Cooke, a member of the lending team which dealt with Mr Kallakis, said he had visited him on his yacht in Monte Carlo while on his way to a property conference in Cannes. He had also gone to Mauritius for the weekend with other members of the team after an invitation from the businessman at the end of a deal.
On another occasion, Mr Kallakis chartered a plane to fly 200 people to a "big do" in St Petersburg but Mr Cooke, who went with his wife, said he paid for his own airfare and accommodation.
Mr Cooke yesterday told Southwark Crown Court that "in some ways" they were "encouraged to go" on such trips by AIB. Mr Kallakis and his business partner Alexander Williams deny 23 charges of fraud and money laundering relating to 16 property deals between 2003 and 2008.
They are charged with orchestrating a scheme in which faked guarantees from a reputable Hong Kong property company were used to secure the loans which were worth €920m in total.
AIB lost millions of euro as a result of the alleged fraud. The properties were sold off discreetly to the Green Property Group in late 2008, shortly after the bank guarantee had been announced.
The loans were used to fund Mr Kallakis' "extravagant lifestyle", the court has heard.
Yesterday, Mr Cooke -- who is now the director of a residential land company -- said the level of entertainment which was provided was appropriate for the custom the bank had with Mr Kallakis for a number of years.
By the end of the loans period, in 2008, Mr Kallakis was one of the bank's largest clients.
All of the trips were registered and signed off by the bank, Mr Cooke said, which was in line with the rules.
Yacht
On another occasion, he had been invited to go on Mr Kallakis' yacht for the Monaco Grand Prix but did not do so.
The pair are accused of forging rent guarantees from the listed Hong Kong property company -- Sun Hung Kai Properties (SHKP) -- to secure the loans between 2003 and 2008. Yesterday, Mr Cooke said he had built up a friendly business relationship with Mr Kallakis, and understood him to be connected with a larger Greek shipping business.
The accused had "nice offices, nice house, nice car", was "clearly a man of means" and appeared as a "man of integrity" said Mr Cooke.
The case is due to continue today.
Sourc: Independent
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