Senior Belfast business and legal figures charged with fraud after huge NAMA corruption investigation

The massive investigation centred on the biggest single property transaction in the history of the island of Ireland, the sale of the Republic of Ireland’s ‘bad bank’ NAMA’s vast Northern Ireland loan book – which had been taken on by the Irish state after it bailed out Irish banks during the financial crash – were sold to US vulture fund Cerberus for £1.1 billion in June 2014.

In a statement this morning, the Public Prosecution Service (PPS) said that it was charging two men – one aged 78 and the other 49 – with fraud in relation to the sale.

Solicitor Joe Rice, who represents Mr Cushnahan, confirmed that his 78-year-old client – a retired banker and senior Belfast businessman – was one of the men.

Mr Rice said: “We’re extremely disappointed Mr Cushnahan has been charged. He will be pleading not guilty at any forthcoming trial.”

Solicitor John Finucane, who represents the 49-year-old Mr Coulter, said that his client would also be pleading not guilty.

He said: “Today the PPS have confirmed that Mr Coulter will face a total of five charges arising out of the sale of the NAMA loan book, known as Project Eagle. 

“This follows a police investigation which has lasted in excess of five years. My client now enters into what will undoubtedly be a lengthy court process lasting years, where he will maintain his innocence to the offences alleged, as he has throughout this drawn out process.”

Mr Cushnahan had been appointed to NAMA’s Northern Ireland advisory board by a DUP minister, and he is a well known figure both in business and political circles in Belfast, having served on the board of the Office of the First Minister and deputy First Minister and been involved in multiple major companies.

Mr Coulter was the managing partner of Tughans law firm in Belfast at the time of the deal but has since left the firm. Another well known figure in Belfast’s political, legal and business circles, Mr Coulter is a former Northern Ireland chairman of the CBI.

Five years ago a number of allegations led to the start of a complex investigation and decision whether to prosecute – a process which involved the PSNI, National Crime Agency and then the PPS.

The PPS said that it had considered “a complex and substantial file submitted by NCA investigators” and had decided that “there is sufficient evidence to prosecute two suspects in connection with alleged activity around the property deal known as Project Eagle”.

The PPS said: “A 78-year-old man is to be charged with one count of the offence of fraud, contrary to Section 1 of the Fraud Act 2006 involving a failure to disclose information between 1st April 2013 and 7th November 2013.

“The 78-year-old and a 49-year-old man are also to be jointly charged with one count of fraud, contrary to Section 1 of the Fraud Act 2006 involving a false representation made on or around the 3rd April 2014.

“The 49-year-old man is to be further charged with: One count of fraud, contrary to Section 1 of Fraud Act 2006 involving a false representation made on or around 11th September 2014; one count of fraud, contrary to Section 7 of the Fraud Act 2006 involving making an article in connection with a fraud on or about 13th August 2014;two counts of the offence of concealing criminal property, contrary to Section 327 of the Proceeds of Crime Act 2002 involving concealing, disguising or transferring criminal property between the 15th September 2014 and 1st December 2014.”

Prosecutors had considered whether to prosecute nine individuals who had been under investigation. The PPS said that the investigation “examined, amongst other matters, the circumstances around the sale and attempted sale of NAMA’s Northern Ireland property loan book to two US investment firms in 2014”.

It said that “Further decisions have been taken today not to prosecute six other individuals reported in connection with Project Eagle after it was concluded that there was insufficient evidence available to provide a reasonable prospect of conviction.

“A decision was previously taken not to prosecute one suspect in November 2018 arising out of the Project Eagle investigation.”

Those decisions were based both on a decision as to whether there was available evidence sufficient to provide a reasonable prospect of a conviction, and if prosecution is in the public interest.

PPS Assistant Director Ciaran McQuillan said: “We have been working in close partnership with the National Crime Agency in respect of its wide-ranging investigation into the sale of Nama’s property loan book in Northern Ireland.

“We would like to take this opportunity to recognise the diligence of the NCA in this investigation and the comprehensive nature of their enquiries.

“A considerable volume of evidence submitted to the PPS has been painstakingly examined by a team of experienced and senior prosecutors, with the benefit of advice from two Senior Counsel. As a result, it has been concluded that there is sufficient evidence for two of those reported to be prosecuted for a number of serious charges.

“Whilst the Test for Prosecution was met in respect of two suspects, it was considered not met on evidential grounds in respect of seven further individuals with regard to the Project Eagle investigation. All decisions were taken in full accordance with the PPS Code for Prosecutors and only after a thorough consideration of all issues.

“As criminal proceedings will commence in due course and each defendant has the right to a fair trial, it is extremely important to protect the integrity of any future trial that there should be no reporting, commentary or sharing of information online which could in any way prejudice those proceedings.”

The PPS said that its decision related “only to allegations investigated around Project Eagle” and that “an NCA investigation into a number of additional matters, not connected to Project Eagle, remains on-going and may result in further prosecutorial decisions being made at a later time”.

NCA Deputy Director of Investigations Craig Naylor said: “This operation has been and remains an incredibly complex investigation, which is of enormous importance to the public in Northern Ireland and beyond. Today’s announcement is therefore a significant milestone.

“I’m grateful to officers here in the NCA and colleagues in the PPS for their professionalism and commitment throughout, which has been instrumental in getting us to where we are.

“The investigation is not over yet. We have further lines of inquiry to follow up and we will continue to liaise as appropriate with PPS colleagues.”

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