John Rusnak
Encyclopedia
John Rusnak is a former currency trader at Allfirst
bank, then part of AIB Group, in Baltimore, MD, United States
. On January 17, 2003 he was sentenced to 7½ years in prison for hiding US$691 million in losses at the bank, after bad bets snowballed in one of the largest ever cases of bank fraud
. He was transferred from prison to a halfway house in June 2008, to home confinement in September 2008, and ultimately released from home confinement on January 5, 2009, serving just under 6 years.
Rusnak could have faced up to 30 years in prison. The original 7½ year sentence was part of a plea bargain
with US prosecutors. He was released early having earned good-behavior credits and completing a drug treatment program. Upon his release, he started paying US$1,000 a month for the five years of his probation.
Rusnak will remain on the hook for the full $691 million he lost, but prosecutors said the amount he pays back will depend on how much money he is able to make after leaving prison.
Following the scandal AIB sold Allfirst to M&T Bank
of Buffalo, New York, in July 2003. AIB retained 23% of M&T stock. Over 1,100 Allfirst employees lost their jobs in the sale.
First Maryland Bancorp
First Maryland Bankcorp was the holding company for the First National Bank of Maryland, acquired by Allied Irish Banks in 1997.In 1999 First Maryland Bankcorp merged with Dauphin Deposit Corporation to form Allfirst Financial....
bank, then part of AIB Group, in Baltimore, MD, United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. On January 17, 2003 he was sentenced to 7½ years in prison for hiding US$691 million in losses at the bank, after bad bets snowballed in one of the largest ever cases of bank fraud
Bank fraud
Bank fraud is the use of fraudulent means to obtain money, assets, or other property owned or held by a financial institution, or to obtain money from depositors by fraudulently representing to be a bank or financial institution. In many instances, bank fraud is a criminal offense...
. He was transferred from prison to a halfway house in June 2008, to home confinement in September 2008, and ultimately released from home confinement on January 5, 2009, serving just under 6 years.
Rusnak could have faced up to 30 years in prison. The original 7½ year sentence was part of a plea bargain
Plea bargain
A plea bargain is an agreement in a criminal case whereby the prosecutor offers the defendant the opportunity to plead guilty, usually to a lesser charge or to the original criminal charge with a recommendation of a lighter than the maximum sentence.A plea bargain allows criminal defendants to...
with US prosecutors. He was released early having earned good-behavior credits and completing a drug treatment program. Upon his release, he started paying US$1,000 a month for the five years of his probation.
Rusnak will remain on the hook for the full $691 million he lost, but prosecutors said the amount he pays back will depend on how much money he is able to make after leaving prison.
Following the scandal AIB sold Allfirst to M&T Bank
M&T Bank
M&T Bank is an American commercial bank that was founded in 1856 in western New York, and today remains headquartered in Buffalo at One M & T Plaza...
of Buffalo, New York, in July 2003. AIB retained 23% of M&T stock. Over 1,100 Allfirst employees lost their jobs in the sale.
External links
- Allied Irish Banks case study at ERisk.com
- Panic At The Bank A book review of Panic At The Bank.
- AIB Group The owner of Allfirst bank at the time of the fraud.
- Indictment document filled with the District Court of Maryland
- Baltimore Sun coverage of Rusnak's release