John Rusnak
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John Rusnak was a former currency trader at Allfirst bank, then part of AIB Group, in Baltimore, MD, United States. On January 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 of bank 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.
[edit] 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 newspaper The 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 by Gill & MacMillian.
[edit] See also
[edit] External links
- Allied Irish Banks case study at ERisk.com
- Panic At The Bank A book review of Panic At The Bank.
- AIB Group The owner of Allfirst bank at the time of the fraud.
- Indictment document filled with the District Court of Maryland
