Trial of two men accused of fraud over NAMA deal begins

Two prominent businessmen have gone on trial in Belfast accused of fraud related to a National Asset Management Agency loan deal of more than £1 billion.

83-year-old Frank Cushnahan, with an address at Alexandra Gate in Holywood in Co Down, is facing two charges.

54-year-old Ian Coulter, with an address at Templepatrick Road in Ballyclare in Co Antrim, is facing five charges.

Mr Cushnahan, a business consultant and former member of NAMA’s Northern Ireland advisory committee, is charged with fraud by failing to disclose information and fraud by false representation.

Mr Coulter, a solicitor and former law firm managing partner, faces two charges of fraud by false representation, a charge of making or supplying articles for use in fraud, a charge of removing criminal property and a charge of transferring criminal property.

The two defendants have pleaded not guilty to all the charges.

The charges relate to the sale, over a decade ago, of a loan book of Northern Ireland properties held by NAMA.

The agency was set up by the Irish government in 2009 to deal with bad property loans after Ireland’s banking crisis in 2008.

NAMA bought the bad loans from the banks at a steep discount and then sold them off to the highest bidder.

The Northern Ireland loan book involved loans bundled together into an enormous portfolio known as Project Eagle.

The debts, which were worth around £4 billion, were eventually sold to a US investment fund in 2014 for £1.1 billion.

Opening the trial this afternoon, Jonathan Kinnear KC, said it was the prosecution’s case that the two defendants were “heavily involved in the brokering and arrangement of the deal.”

He said it is alleged by the prosecution that “in return for their work, they were to be paid millions of pounds each, we say, from a success fee of about £15 million.”

The prosecution barrister told the members of the jury that “motivated by greed, they both acted dishonestly, withholding information and providing false information to ensure that they shared the massive profits that were available.”

After outlining an overview of the prosecution’s case, Mr Kinnear told the jurors that “ultimately you will need to decide if the defendants acted dishonestly.”

The prosecution told the jury it will take a couple of days to complete the opening statements in this trial, which is being heard at Belfast Crown Court, before Judge Madam Justice Denise McBride.

12 jurors, nine men and three women, were sworn in to hear the case, which is expected to take up to 12 weeks.