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 Post subject: Credit Unions - Invisible companies
PostPosted: Tue Nov 08, 2016 9:07 pm 
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Of Systemic Importance

Joined: Jun 9, 2008
Posts: 7056
Rush Credit Union Limited made the headlines.

Quote:
The Central Bank of Ireland (“Central Bank”) has made an application today to the High Court to have joint provisional liquidators appointed to Rush Credit Union Limited ("Rush Credit Union"). Jim Luby and Tom Rogers of McStay Luby were appointed as joint provisional liquidators by the President of the High Court, Mr Justice Peter Kelly. The full application will be heard in approximately two weeks’ time, when the Central Bank will seek the winding up of Rush Credit Union.


What type of legal limited entity is a credit union? It's name would suggest a limited company but it is nowhere to be found on the CRO website. There appears to be no external publication generally of credit union financial statements aside from what they decide to publish on websites.

Presumably the Central Bank as a supervisory body has the FS but even they seem circumspect in publishing information.

Quote:
The Central Bank‘s objective is to be as transparent as possible by providing information to reassure credit union members regarding the actions taken, while also fully respecting the legal process. In the interests of transparency, the Central Bank will publish the Resolution Report and Affidavit (on a redacted basis), which formed part of today’s High Court application, on http://www.centralbank.ie following the full hearing for the winding up of Rush Credit Union. The Central Bank will continue to liaise with An Garda Siochana in relation to Rush Credit Union.


http://www.centralbank.ie/press-area/pr ... MITED.aspx

As Charlie Weston notes

Quote:
How did three monitoring bodies miss financial trouble at Rush CU?

Progressive Credit Union is also aiming to buy the €10m loan book of scandal-hit Rush Credit Union.

It emerged that the financial irregularities at Rush were discovered by accountants working for Progressive in March.
But the financial shenanigans were missed by Central Bank regulators, Rush Credit Union's auditors, and the Irish League of Credit Union's monitoring operation.

Progressive had been checking out the financial fitness of Rush Credit Union as it had intended to take it over, but walked away from the deal when it discovered suspected fraud, and other financial shortcomings.


http://www.independent.ie/business/iris ... 90064.html

It seems absolutely amazing that given everything that has transpired here that this clusterfuck was allowed to endure for so long.

Public savings but no published financial information? "Encouraged" by the CB, multi mergers of the smaller credit unions. One could be forgiven for concluding that bigger balance sheets can bury bigger holes and that is the aim. Of course, given the CB's indulgence of the Custom House Capital ponzi, not hard to think that nothing has really changed in town.

If you don't have a loan with a credit union, but have savings, I'd GTFO.

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 Post subject: Re: Credit Unions - Invisible companies
PostPosted: Tue Nov 08, 2016 10:12 pm 
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Of Systemic Importance

Joined: Jun 9, 2008
Posts: 7056
Quote:
HUNDREDS of false loans were created on accounts of members of the Dublin credit union that is being investigated by gardai over fraud allegations.

Gardai are following a "definite line of inquiry" in their probe into a suspected fraud at Larkhill Credit Union in Whitehall involving up to €400,000.
Savings accounts of members had money taken from them in unauthorised withdrawals. Now it has emerged that loans were created on some members' accounts without their knowledge.


Another Charlie Weston article. Can't find any record of any criminal prosecution.

http://www.independent.ie/business/pers ... 59256.html

Meanwhile, all seems cool at the affected CU.

http://www.ldcu.ie/

(No financial information there of course.)

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“Don't ask the barber if you need a haircut—and don’t ask an academic if what he does is relevant.” Nassim Nicholas Taleb


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 Post subject: Re: Credit Unions - Invisible companies
PostPosted: Wed Nov 09, 2016 7:12 am 
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Under CAB Investigation

Joined: May 12, 2012
Posts: 1882
Unlike what you would have them believe, CUs are barely able to lend out a quarter of members' savings. They are not really serving any financial intermediation purpose.

This means a lot of cash floating round, going into zero-yielding assets or as you see in Rush, worse.

See more: viewtopic.php?p=880854#p880854


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 Post subject: Re: Credit Unions - Invisible companies
PostPosted: Mon Nov 21, 2016 9:59 pm 
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Of Systemic Importance

Joined: Jun 9, 2008
Posts: 7056
Quote:
The Resolution Report as well as an affidavit by the Central Bank’s Head of Resolution for Credit Institutions Patrick Casey - published in redacted form by the Central Bank - detail a number of governance, financial and internal control failures identified in Rush.

The deficiencies uncovered cover control of bank and cash, lending practices, as well as the day-to-day running of the credit union.

Rush’s August management accounts show liabilities exceeded total assets by €1.2m, with alleged misappropriation of €800,000 bringing this figure to €2m.

The credit union spent €220,860 on 15 car draws between November 2012 and April of this year, however, in its report the Central Bank said Grant Thornton has been “unable to locate details winners of previous car draws”.


http://www.rte.ie/news/business/2016/11 ... dit-union/

Problems seem to go years back. No rush then..

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 Post subject: Re: Credit Unions - Invisible companies
PostPosted: Tue Nov 22, 2016 9:14 pm 
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Of Systemic Importance

Joined: Jun 9, 2008
Posts: 7056
Quote:
Distinguished Service Award
Rush Credit Union are delighted to announce that Mr Gerry Foley is to be awarded the Distinguished Service Award by the World Council of Credit Unions (WOCCU) this July. The award ceremony will take place at the 2005 World Council Of Credit Unions Conference in Rome and will be attended by Credit Unions from around the globe.

Gerry is well known in the Credit Union movement, being a founding member of Rush Credit Union and also a former Chairperson of the Credit Union. Gerry was also a former President of the Irish League of Credit Unions and in June 2001 was elected as the Chairperson of the World Council of Credit Unions, only the second Irish person to ever hold that position.

Rush Credit Union wish to extend warmest congratulations to Gerry and his family and to thank Gerry for his tireless efforts on behalf of Rush Credit Union and its members and for his continued promotion of Credit Union ideals world wide.


http://www.rushcu.ie/news.asp?section=News&ID=36

Inspires much confidence in the CU sector.

And hey, ICLU 2014 report

Quote:
Standing Orders Committee
Gerry Foley Chairperson, Rush Credit Union Limited


https://www.creditunion.ie/media/credit ... educed.pdf

Look at his linked in

Quote:
Education
University of Marlborough


https://www.linkedin.com/in/gerry-foley-9bb6bb1b

Not much available on that institution

Quote:
Claiming to be located in Hawaii, they want you to send your check, made payable to Charles James, to Life Experience Awards, Streak Ahead Communications at an address in Bangkok, Thailand.

Their old URL, www.marled.com is no longer functional. Some of the pages can be found at www.streakahead.com although most of the links point back to the old domain.

This is one to avoid.


http://www.degreeinfo.com/general-dista ... rsity.html

The man himself on a CU junket to Vegas in June 2010

Image

Quote:
For example, in June 2010, as six ILCU board members prepared for a €20,000 trip to Las Vegas, the then registrar of credit unions, James O’Brien, told the Central Bank that the sector had ‘significant stresses’ from loan arrears.


http://www.newsscoops.org/?p=1606

Rather excellent MoS article.

Fuckers.

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 Post subject: Re: Credit Unions - Invisible companies
PostPosted: Wed Nov 23, 2016 2:18 am 
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Under CAB Investigation

Joined: Dec 2, 2013
Posts: 2311
I believe the recommended tactic when a Credit Union scam is unearthed is to book yourself into John of Gods ASAP with "stress"

15 cars disappeared in North county Dublin ?


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 Post subject: Re: Credit Unions - Invisible companies
PostPosted: Wed Nov 23, 2016 6:44 pm 
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Speculator

Joined: Apr 27, 2014
Posts: 431
Some Documents

The affidavit unfortunately redacted - the PDF contained images rather than text - https://www.scribd.com/document/3320898 ... t-Redacted

The OCRed text of the affidavit - https://www.scribd.com/document/3320898 ... -Affidavit

The report unfortunately redacted - the PDF contained images rather than text - https://www.scribd.com/document/3320899 ... t-Redacted

The OCRed text of the report - https://www.scribd.com/document/3320898 ... eport-Text


Additional Comments

Some more points here.


ILCU Tech

The same Gerry Foley was a director of ILCU Tech, a company that managed to apparently spend IR£27 million on developing a non-existent IT system for Irish Credit Unions in 2000. Boys and girls, this was back in the days when the Celtic Tiger was just a playful juvenile that kept getting caught up trees in North Dublin, having to be rescued by Bertie Ahern who apparently had some Mad Sweeney-like desire to climb trees, and not the roaring beast he became and when IR£27 million was actually quite a lot of money rather than the hundreds of million and billions we have now become so used to being pissed away. Of course the Celtic Tiger is now a saggy, shaggy, smelly rug in the board room of the ECB in Frankfort with his mouth being used as a target for putting. Of course they was the day when David Cameron came visiting and the mouth, well, we'll leave that for another day.

From the year 2000, just after we got over the scare of being eaten by Y2K bug infected microwaves but before we were really eaten alive by German bondholders, Irish property developers, useless regulators and spineless politicians:

http://www.irishtimes.com/business/cred ... l-1.284888

Quote:
Credit unions need a radical overhaul

After more than 13 hours of talk in Limerick at the weekend, it is clear that, five years and £27 million later, the Irish League of Credit Unions is back where it started.

The movement is battered but it remains to be seen if it is wiser. During its weekend conference, from which the media was excluded, there was much talk of the structures which were in place for the ill-fated Isis project, and much of the consultation and debate which will take place over the coming weeks and months will focus on this aspect of the whole affair.

What is clear is that the board of the company set up to oversee the development of the project, Ilcutech Ltd, was not equipped for the task it set itself.

This in turn raises another question - whether the structures which exist for running the league of credit unions are themselves adequate for the job.

It is worth, for a moment, reviewing what happened with the Isis project. In 1995/ 1996, five individual credit unions got together to introduce the sort of technology it was felt members required.

A year or so later this project was merged with an initiative for the overall league, and Ilcutech was established. The board of the new company was made up of 10 directors, five coming from the league and five from credit unions contributing to the project.

The project was launched officially in April 1998. A firm of London consultants, OSI, had been engaged and a draft estimate for the technology system required was arrived at - £40 million.

The Ilcutech board comprises volunteers, teachers and retired workers, none of whom were best equipped with the sort of specialist project management, technological or financial skills required for what was a huge task. The dependence on OSI was extremely high.

By the time the project was abandoned, the estimated cost of completion was given as between £68 million and £100 million.

The spend had been £27 million, some £5.5 million of which had come from the £40 million special protection fund. This money was loaned to Ilcutech and is to be repaid, either by Ilcutech or the league.

At the weekend in Limerick there were complaints that the boards of Ilcutech and the league were not at all times kept adequately informed of developments by OSI. The consultants have insisted that this is not the case.

The credit union movement is a great success and has been built on the back of long hours put in by volunteers.

However, as the System Action report reviewed over the weekend in Limerick points out, if the league is to again involve itself in overseeing the delivery of a technology solution for its members, appropriate project management skills will have to be put in place.

The structures at league level will also have to be examined. The weekend conference at times resembled meetings of the British Labour Party in the 1970s, according to one delegate, with lengthy wrangles over procedures.

The Dublin headquarters of the league, in Lower Mount St, has 50 to 60 staff. The full-time general secretary, Mr Tony Smyth, is the de facto chief executive and runs the operation with an eight-member management team.

It is believed they work for salaries more akin to the public sector than the world of financial services.

The member unions of the league of credit unions now have £3.7 billion on deposit. They operate in an economy and society undergoing rapid change and will have to consider implementing structures which reflect that change.


16 years later and the radical overhaul is underwhelming.

Ilcutech Limited

Company Number 257712

Quote:
Ilcutech Limited was set up on Thursday the 5th of December 1996. Their current address is Deloittes, Deloilte & Touche House, Earlsfort Terrace, Dublin 2, and the company status is Dissolved with the company closing on Tuesday the 14th of March 2006. The company's current directors Eugene O'Brien and Gerry Foley have been the director of 2 other Irish companies between them.


Gerry Foley is currently a director of G.D.A. International Standards Awards Company Limited. GDA stands for Good Design Awards.

It does not say at designing what. But clearly not standards, governance, processes, IT systems and car draws.


So-Called Car Draw

http://www.irishtimes.com/business/fina ... -1.2878447

Quote:
Shocking revelations at Rush Credit Union are just the start

Ciarán Hancock

A car draw involved almost €221,000 being spent on vehicles between 2009 and 2016 – and money being taken out of customer accounts without their consent.

Grant Thornton could find no record of the draw winners when it conducted a forensic review, and some €450,000 was eventually repaid to members this year in redress.


Actually, Ciaran, the amount spent on cars was almost €221,000 for the interval 1 November 2012 and 30 April 2016, according to the affidavit. There are no amounts listed from 2009 to 30 October 2016 for car purchases - see page 15 of the affidavit. But the amount to be refunded is €450,000, the amount taken from accounts. Maybe they are allowing for inflation on the calculation of the amounts being returned? That's a lot of inflation.

Two car suppliers are listed in the affidavit, based on Grant Thornton's fantastically thorough forensic accounting: Nearys Lusk and RB Motors (re Nearys Lusk).

Nearys did well out of the draws for these currently untraceable cars. Perhaps they can supply information on the car registration details and who the ownerships were transferred to? It should all be in their financial and other company records and readily available. Perhaps Grant Thornton or the Irish Times could contact them to discuss this further?

The failure to contact these companies does not seem very forensic or investigative. Maybe I have different standards?

Note that there is a R.B. MOTORS registered number 135083 with an address of:

RACECOURSE COMMONS
LUSK
CO DUBLIN

and a contact name of:

RONAN BENTLEY

It has no CRO documents listed.

There is also an R.B. MOTORS registered number 490149.

See http://www.rbmotorcompany.com/.

The address listed on the web site is:

RB Motors
Unit 11
Ashcourt
Ashbourne Industrial Estate
Ashbourne
Co. Meath

This has a registered address of:

UNIT 22 ASHBOURNE INDUSTRIAL ESTATE
ASHBOURNE
CO. MEATH

The owner of this is listed as ROBERT BRUCE BALLAGH.

There is a Lusk Motor Factors with a company number of 115736.

The directors are: Leo Christopher Neary, Adrian Neary and David Neary.

The address is:

Station Road
Lusk
Co. Dublin

Note that David Neary - DOB 14/08/1964 is also a director of Van & Jeep Recycling Centre Limited company number 573617 with a registered address of:

UNIT 22
ASHBOURNE INDUSTRIAL ESTATE, BALLYBIN ROAD
ASHBOURNE, CO. MEATH

which is the same registered address of RB Motors with just ROBERT BRUCE BALLAGH as director.

So:

RB Motors of Lusk owned by RONAN BENTLEY.
RB Motors of Ashbourne owned by ROBERT BRUCE BALLAGH. There is a Bruce Ballagh who is described as a car dealer and the son of the artist.

Perhaps some suspiciously grand names here, Bentley-Bruce-Ballagh the Luskbourne claimant.

None of the Nearys are or were directors of either of these RB Motor companies but one shares a registered address, for some reason. And that company apparently supplied a car for a dodgy car draw as did the Nearys.

Perhaps just some coincidences?

Just saying. Just running it up the flagpole to see who will salute, dropping it in the pool to see if it makes a splash, putting it in a saucer to see if the cat licks it up.

Maybe Gerry Foley was an admirer of George Orwell and Rush should be renamed Rushania:

Quote:
The Lottery, with its weekly pay-out of enormous prizes, was the one public event to which the proles paid serious attention. It was probable that there were some millions of proles for whom the Lottery was the principal if not the only reason for remaining alive. It was their delight, their folly, their anodyne, their intellectual stimulant. Where the Lottery was concerned, even people who could barely read and write seemed capable of intricate calculations and staggering feats of memory. There was a whole tribe of men who made a living simply by selling systems, forecasts, and lucky amulets. Winston had nothing to do with the running of the Lottery, which was managed by the Ministry of Plenty, but he was aware (indeed everyone in the party was aware) that the prizes were largely imaginary. Only small sums were actually paid out, the winners of the big prizes being non-existent persons. In the absence of any real intercommunication between one part of Oceania and another, this was not difficult to arrange.


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 Post subject: Re: Credit Unions - Invisible companies
PostPosted: Wed Nov 23, 2016 8:16 pm 
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Of Systemic Importance

Joined: Aug 4, 2007
Posts: 5293
Location: Ahernistan
The Government could have saved the tax payer a great deal of money, & avoided a lot of future pain, simply by mentioning in negotiations with the GRA; that a full audit of the Saint Raphaels Credit Union was overdue .....

There would have been a collective loosening of bowels on the other side of the table, & the rank & file members would gotten back in the box. :x :x

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"Mr Kelly said Ireland’s “reputational capital” had been damaged by “chancers” such as ex-Anglo Irish Bank chairman Seán FitzPatrick, who had been abetted by “buffoons” such as former financial regulator Patrick Neary, Minister for Finance Brian Lenihan and the Taoiseach." - Irish Times 13th Jan 2009

"If you can't be a good example, then you'll just have to be a horrible warning." (Catherine Aird)


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