Former Anglo Irish Bank chairman Sean FitzPatrick has given evidence to the High Court about his investment in London property in 2006.

He was questioned as part of bankruptcy proceedings.

Mr FitzPatrick said he had made an investment in the name of an employee of the bank who managed his personal and family property portfolio.

He said he had already made a £1m investment and was quite happy with his investment and was quite wealthy at the time.

Mr FitzPatrick arranged that Mark Redmond could take any profit arising from an additional £250,000 investment, but he provided the money.

He told the court it was not a loan agreement, it was simply an arrangement.

Mr FitzPatrick said: "I'm not trying to sound arrogant or smart about it, but I was quite wealthy at the time and I decided to do this for Mark. He was a school leaver from Tallaght and was not a graduate like others coming into the bank."

Earlier, Mr Redmond gave the same evidence about the investment and agreed it was different to what was recorded in a statement given to CAB in 2010.

Mr Redmond told the High Court he was in "complete shock" when interviewed by the Criminal Assets Bureau in 2010.

His evidence today contradicted information contained in a statement to CAB about his investment.

Mr Redmond told CAB he had been offered an investment opportunity, but could not afford it, so Mr FitzPatrick provided the capital for him.

However, this morning he said it was Mr FitzPatrick's sole decision to make the investment in Mr Redmond's name along with a promise to give him any profit from the investment.

He was holding it in trust for Mr FitzPatrick, he said, adding that Mr FitzPatrick was responsible for all costs associated with the investment and it was essentially his investment.

When asked why he did not make clear the source of the funding in a note to his superiors informing them of his investment he replied: "I just didn't."

Mr Redmond said a note on the file outlining details of the arrangement did not accurately reflect the nature of the investment.

The note simply recorded Mr FitzPatrick would be paid the original £250,000 when the investment matured.

He said he was delighted when Mr FitzPatrick made the suggestion. He was on a salary of €50,000 at the time and could not have afforded such an investment.

When asked about why he told CAB officers the investment was his, he said he was in complete shock when they called to interview him.

He said he had been out at a Christmas lunch and was called back to the bank by CAB officers.

Mr Redmond did not recall telling them the investment opportunity was presented to him personally.

Questions over investment note

He was also questioned about a hand written note he says he wrote at the time of the investment for his own records.

Asked why he was writing a note to himself, he said it was a big event for him. He insisted the note was contemporaneous.

He denied it was unusual that it contained much more detail regarding the cost of the investment and how he would not be liable for them.

Mr Redmond rejected suggestions that later investments by him in other London properties were exactly the same as the first, where Mr FitzPatrick had provided a guarantee for his loans. He said they were completely different arrangements.

Mr Redmond began working in Anglo in 2000 and was promoted to manager.

He accepted it was an unusual situation that much of his working time was spent managing Mr FitzPatrick and his family's investments.

The former Anglo Irish Bank chairman was declared bankrupt in July 2010.

Mr FitzPatrick is estimated to have debts of €150m and assets of €47m.

He was sent forward for trial at the Circuit Criminal Court on charges of providing unlawful financial assistance to 16 individuals in July 2008.

FitzPatrick paid school fees

Mr FitzPatrick later told the court that he paid school and college fees for the children of some employees in Anglo.

He said he also paid the university fees of some Anglo personnel and described them as gifts.

Mr FitzPatrick said he had paid the fees out of his own money and had notes on the payments.

He also told the court this afternoon that he had never made an investment that he did not feel confident of getting back, adding that clearly he had not got everything back.

Mr FitzPatrick said he never once put money into an investment that he thought would go bad at the time.

The case has been adjourned and will be before the High Court again next month.