- John Rusnak
John Rusnak was a former currency trader at Allfirst bank, then part of
AIB Group , in Baltimore, MD,United States . OnJanuary 17 ,2003 he was sentenced to 7 1/2 years in prison for hiding US$691 million in losses at the bank, after bad bets snowballed in one of the largest ever cases ofbank fraud .Rusnak could have faced up to 30 years in prison. The 7 1/2 year sentence was part of a
plea bargain with US prosecutors. Upon his release, he must start paying US$1,000 a month for the five years of his probation.Rusnak will remain on the hook for the full $691 million he lost, but prosecutors said the amount he pays back will depend on how much money he is able to make after leaving prison.
Following the scandal AIB sold Allfirst to
M&T Bank of Buffalo, New York in July, 2003. AIB retained 23% of M&T stock.References
"Panic At The Bank" is a book written by "
Siobhán Creaton " and "Conor O'Clery", both journalists who followed the story for the Irish newspaperThe Irish Times , that details the events which lead up to the fraud and how it was carried out and hidden from the bank's authorities.It is published byGill and Macmillan .See also
*
List of trading losses External links
* [http://www.erisk.com/Learning/CaseStudies/AIBCaseStudy.pdf Allied Irish Banks case study at ERisk.com]
* [http://www.gillmacmillan.ie/Ecom/Library3.nsf/CatalogByTitle/B420F430FA62639C80256BEA00331043!OpenDocument Panic At The Bank] A book review of "Panic At The Bank".
* [http://www.aibgroup.com AIB Group] The owner of "Allfirst" bank at the time of the fraud.
* [http://www.usdoj.gov/dag/cftf/chargingdocs/allfirst.pdf Indictment document filled with the District Court of Maryland]
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