The Daily Telegraph reports that John Rusnak, the FX dealer at the centre of the Allied Irish Banks (AIB) $691m trading scandal, has agreed to serve a seven year jail term after having pleaded guilty to securities fraud.
Rusnak, 37, will continue to co-operate with US authorities who are still investigating the case described by the FBI as 'the largest bank fraud in the US in the last decade.' It is unclear if anyone else will be dragged in and implicated at this stage.
The former AIB man will have to serve just short of six years and will then be subjected to a supervisory release. He will be formally sentenced in January.
AIB have since sold US subsidiary Allfirst, the Maryland banking unit where Rusnak perpetrated the fraud, to M&T Bank for around $3bn.