March 26, 2009

Allied Irish Banks victim of loan scam

Britain's Serious Fraud Office said Thursday it had raided three offices concerning an $81.4 million fraud that victimized the Allied Irish Banks.

The amount of losses may escalate, as AIB was not the only victim, The Times of London reported.

The fraud involved loans taken out between 2003 and 2007 that included fraudulent guarantees, The Times said. The Allied Irish Banks, however, discovered the guarantees were not valid in 2008, the Times said.

AIB said it was considering legal action against the suspects to recoup its losses.