The Baltimore-based currency trader suspected of defrauding the U.S. branch of Allied Irish Banks of $750 million received large performance bonuses for his work, the bank said Monday.
A bank official, speaking on condition of anonymity, said John Rusnak would have regularly received annual bonuses exceeding $100,000 on top of his $85,000 salary in reward for his past foreign-exchange trading success at Allfirst Bank of Baltimore.
The confirmation came as an Allied Irish spokesman said the bank’s directors and top management would have to forgo bonuses until an investigation of the alleged fraud is completed.
The official said he didn’t know whether Rusnak had received his bonus for 2001, when he is alleged to have produced dozens of fraudulent documents.
Allied Irish Banks has accused Rusnak, 37, of covering up huge losses in bets on dollar-yen movements by fabricating purchases of options contracts, which would have provided the bank insurance for his money-losing trades.
Rusnak’s attorneys have said their client did not personally profit from the deception.
The FBI has interviewed Rusnak but filed no charges against the Baltimore resident.
The latest details emerged as Eugene Ludwig, a former U.S. comptroller of the currency and a partner of Washington-based Promontory Financial Group, began to oversee Allied Irish Banks’ internal inquiry into the incident.
