Nama fraud prosecution 'utterly hopeless', says defence

The prosecution case against a Belfast businessman accused of fraud has been described in court as "utterly hopeless".

Frank Cushnahan, from Alexandra Gate, Holywood, County Down, has been on trial since September in relation to his role as an adviser to the National Asset Management Agency, known as Nama.

He denies a charge of fraud by failure to disclose information.

On Tuesday, a barrister representing the 84-year-old said his client had helped to "save" the Northern Ireland economy after the financial crash in 2008 and was "completely innocent".

"Northern Ireland has benefitted hugely, hugely from his work over the years," said defence barrister Frank O'Donoghue KC.

Cushnahan has been a prominent businessman in Northern Ireland over many years, working in both the private and public sector.

Mr O'Donoghue told the court that the case against him was "built on innuendo and inferences" which were untrue and "outrageous".

"He has been living a life of character assassination, interrogation, prosecution and some might say persecution for the last 10 years", said the barrister.

Earlier this month, Cushnahan decided not to give evidence in his defence at his fraud trial.

O'Donoghue defended Mr Cushnahan's decision, pointing to his age and the fact that the case concerned events more than 10 years ago.

He said there was no legal obligation to give evidence and added "it's not a witch hunt of an elderly man … this is not a sport".

O'Donoghue said the businessman had played a crucial role in economic revival.

"Northern Ireland was on its knees because of the financial crash … Mr Cushnahan did his level best to keep the Northern Ireland show on the road," he said.

The long-running trial has moved to its final stages, with closing speeches to the jury.

The prosecution has completed its address, and now it is the turn of the defence.

The case dates back to when Cushnahan was an adviser to Nama in 2013, and there was the potential sale of its Northern Ireland loan book after the financial crash.

It is alleged that between April and November 2013, he provided assistance to an American firm called Pimco but did not tell Nama, even though, the prosecution say, he was under a legal duty to do so.

At the time, Pimco was interested in buying the Northern Ireland loan book from Nama. In the end, it was sold to another firm, Cerberus, in a deal worth more than £1bn.

It is alleged that by failing to disclose information to Nama, Cushnahan was in a position to make a gain for himself or someone else.

The defence barrister said that Mr Cushnahan helped set up a meeting between Pimco and ministers in the Stormont executive but it did not amount to formal assistance.

"Absolutely no way did he have to make a disclosure," said O'Donoghue.

He added: "He never had any intention to make a gain."

Criticising the prosecution case, the barrister said it contained "so much rubbish it defies belief".

The trial at Belfast Crown Court is being held before a 12-member jury of nine men and three women.

The judge, Madam Justice McBride, thanked the jury for making it to court on Tuesday in spite of the poor weather conditions.

Nama is the Republic of Ireland's "bad bank", set up to deal with toxic loans after the 2008 property crash.

The agency was established by the Irish government in 2009.

It was responsible for recovering the value of problematic loans made by other Irish banks during the Celtic Tiger period.

Nama bought these loans (land and property and associated loans) at a discount and sold them.

The Northern Ireland loan book was packaged into one portfolio, to be sold in one lump. That portfolio was called Project Eagle.