Man avoids jail for role in home loan fraud

By Fiona Ferguson

A man who helped people applying for home loans to overstate their income has been given a suspended sentence.

George Daly (81) offended in a “misguided attempt” to help “good people” who would not get a home otherwise as they did not have the “pretty picture” required by the banks.

Dublin Circuit Criminal Court heard that Daly’s opinion of the banks had been coloured by their treatment of his son, who lost his home.

He told gardai the banks were “fraudsters” and “greed merchants”.

Daly, of Gaybrook Lawns, Malahide, Dublin, pleaded guilty to use of a false instrument.

The offending behaviour occurred on dates between 2011 and 2017. He has no previous convictions.

Passing sentence last Friday (31st), Judge Martin Nolan said Daly had helped customers embroider their applications and help them disguise what they were doing in order to get loans.

He said if it had been done honestly, none of the approximately 40 applicants would have got loans.

He said he did not know if Daly was a clairvoyant or just lucky with his customers, but all of the loans are performing and being repaid as they should.

The judge said the offending had come to light when one of the customers wanted to refinance and the documentation supplied did not match the original application.

Judge Nolan said if Daly were 40, 50 or 60 years old he would be going to prison immediately, but he was 81 years old.

He said the court had no issue in imprisoning elderly defendants in serious cases where justice demands it, but he had to ask if these crimes were in that category.

He said he had decided at this point Daly did not require a custodial sentence.

He said however it was very reprehensible and serious misbehaviour.

Judge Nolan imposed six years imprisonment which he suspended in full.

An investigating garda told Eoghan Cole SC, prosecuting, that Daly was a mortgage broker operating from his own home and was involved in helping people apply for home loans.

He said gardai were alerted to a suspicious application and gardai searched Daly’s home.

They seized 800 documents in relation to 80 people and compared them to records held by the State.

The documents, including payslips, p60s and certificates of income, represented that people earned more than they did in order to support home loan applications.

The documents appeared to be genuine but referred to companies which had ceased trading.

The applicants were also advised to lodge money to their bank accounts over a number of months to match the fraudulent salary certificates and make bank statements look consistent.

Daly was spoken to by gardai and admitted wrongdoing pertaining to 40 applications.

The court heard the amount of money drawn down in these applications was €3.5 million.

There have been no repossessions or financial loss to the banks on any of the properties and none of the people involved suffered adverse consequences.

Daly would receive an initial fee ranging from €500 to €1500 euro and a brokerage fee if the applications was successful.

The loans were drawn down by the applicants and was not received by Daly. He answered all questions gardai had in relation to his own role.

John Berry SC, defending, said Daly’s view of the banks had been coloured by the way his adult son was treated by financial institutions when he lost his home.

His son now lives with Daly and his wife.

He said Daly had been open and forthright with gardai about his views on banks and had strong opinions about the way they deal with people.

When asked about his process Daly outlined he helped people, who in his opinion were “good people”, who would otherwise not get home loans in their present circumstances.

He said it would take six to nine months for them to “prove” their ability to repay the loan.

Mr Berry handed in a medical report and said his client had health issues and asked the court to take into account his age.

He submitted his guilty plea had been a valuable one.

He said his client had a dual motivation – firstly to make a profit as he was getting a fee, and secondly to help people.

He said the banks were not at a loss but would have to strengthen their checks and balances.

Counsel said it was a misguided attempt to help people who would not get a home otherwise.