John Rusnak was a currency trader at Allfirst Financial Bank, which was a subsidiary of Allied Irish Bank (AIB). In 2002 it was discovered that Rusnak was making fake trades and hid losses of $691 million over five years.
Rusnak tried to hide his losses by supposedly conducting five option trades with at least four other banks that raised about $300 million in cash. However these trades were actually synthetic loans. Rusnak also fabricated prices for fake trades, according to the charges.
On January 17, 2003 Rusnak was sentenced to seven and a half years in prison. Rusnak served a prison sentence until September 2008 and was then confined to his home until January 2009. He was released early and is required to pay $1,000 a month for five years.Allied Irish sold Allfirst to M&T Bank (MTB) in July 2003 after the scandal.