Solicitor, bank manager and advisor face jail

In a case which has seen a solicitor, a former bank manager and a financial advisor implicated in a multi-million pound mortgage fraud, all three parties have now issued guilty pleas.

Damien Mallon, 56, admitted his guilt in the case which also allegedly consisted of a money laundering conspiracy.

Mallon, from Armagh, teamed up with former First Trust bank manager, Peter Creegan, 47, and solicitor Peter Brassil, 51, both from Newry.

Mallon, Creegan and Brassil all pleaded guilty to fraud in a court appearance in Belfast’s Crown Court.

The trio entered guilty pleas to 46 counts plus a number of new charges added to the bill of indictment.

In the investigation, detectives had initially established 116 "high risk lending transactions" linked to Creegan, who was accused of being at the centre of the scam.

The racket allegedly set up false identities to make applications for loans and mortgages.

Mallon was arrested along with Creegan after police received complaints from the bank and a third party.

Early on in the investigation, Mallon, who ran Halifax franchises in Dungannon, Co Tyrone and Keady, Co Armagh, was said to have made admissions about his role which have had a "devastating" effect both professionally and personally.

Mallon was accused of two counts of fraud by abuse of position, six charges of converting criminal property, two counts of entering into an arrangement to acquire criminal property, and conspiracy to defraud on dates between 2002 and 2009.

During Mallon's application for bail in 2009, Crown lawyer Tessa Kitson claimed the operation involved authorising loans to people and businesses, sometimes with false names.

She said: "At this stage, police inquiries have revealed that there are some 116 high risk lending transactions authorised or associated with Mr Creegan. Of these six of them expose the bank to an estimated amount of £3.4 million and €3.9 million."

The court heard that Mallon, who had been suspended by the Financial Services Authority, admitted participation by making false applications - with one sum of £300,000 involved.

"He also admitted to laundering money for other persons associated with Mr Creegan and also for his own benefit," Mrs Kitson said at the time.

Originally, the prosecution had said loan applications were made where the applicants either did not exist or knew nothing about the request.

It was then claimed that money was released from the bank, which is the Northern Ireland unit of Allied Irish Bank, and used to buy property under company names..

As Newry branch manager, Creegan was said to be able to lend out sums up to £300,000 without seeking authorisation from anyone higher up in the bank.

Accounts with both First Trust and Halifax - with whom Mr Mallon had an agency - were also allegedly used to distribute the proceeds of tax evasion and fuel smuggling.

"The bank themselves feel in the worst-case scenario their exposure is a potential exposure of up to £85 million," the lawyer said.

Although much of the multi-million pound fraud has been traced back to property, a considerable amount remains unaccounted for, it was claimed.

Defence counsel Ronan Daly had previously said Mallon made confessions during 18 police interviews over a week in late October 2009, but stressed his involvement with Creegan was limited.

He had also told the court his client received a 2.5 per cent cut on the £300,000, obtained from the First Trust Bank. The barrister's submissions that Mallon was only a "small fish" in the alleged scam were accepted by the prosecution.

The men have now been released on continuing bail and are to return to the court on January 31st.