He's 'broke', but Drumm hires decorators for his $2m mansion
Published 16/11/2010 | 05:00
'BROKE' banker David Drumm had a team of painters and decorators working on his new $2m (€1.4m) home last night.
The former Anglo Irish Bank chief executive, who claims he can't even pay his credit card bills, had two contractors working on a basement conversion at the red-brick house in Wellesley, an affluent commuter town on the outskirts of Boston.
There was no sign of Mr Drumm (44), who filed for bankruptcy with debts of €10.26m last month, at the house last night.
He is due to present himself in court in Boston today for a meeting with creditors, including his former employer Anglo, which is owed €8.5m.
One of the contractors said he hadn't seen Mr Drumm and thought he was "away". Neighbours also said they hadn't seen Mr Drumm "in a while".
Mr Drumm fled to Massachusetts in December 2008 after resigning as chief executive of Anglo following revelations that the bank's chairman Sean FitzPatrick had been hiding up to €100m in director's loans from shareholders.
He had been living in a $4.6m (€3.4m) mansion in Chatham on Cape Cod before the Wellesley house was bought through a property trust -- an instrument which protects it from creditors -- earlier this year.
The hiring of workmen to do improvements on the Wellesley property will raise further questions about Mr Drumm's finances.
Anglo has already questioned the accuracy of financial information he supplied to the bankruptcy court in Boston.
It is a serious allegation to make, as under US law the penalty for making a false bankruptcy statement is a fine of up to $500,000 (€367,000) and/or up to five years in prison.
The bank is seeking court permission to question him under oath about his assets, property dealings and other financial affairs.
Anglo has also asked Mr Drumm to provide information about his new financial advisory business, Delta Corporate Finance, from which he claims to be paying himself $9,000 (€6,500) a month.
Mystery surrounds the business, through which he is reputed to be advising a number of former Anglo customers.
The Irish Independent called to 28 Damrell Street in Boston's Dorchester district, the address for Delta's office listed by Mr Drumm in court filings. However, no one there had heard of Delta or Mr Drumm.
The building is owned by the Mayo Group, a property development firm run by Mayo-born developer John McGrail.
Mayo Group previously received loans of over €100m from Anglo for projects in the Boston area, although it is unclear if Mr Drumm was involved in providing the loans.
Mr McGrail's secretary said she did not know who Mr Drumm was or why he had listed the building as his business address.
Anglo is also seeking documents from Mr Drumm outlining how he spent his earnings while he was the bank's chief executive between 2005 and 2008.
The Irish Independent has learned that in July he paid $34,200 (€25,150) up front for school tuition fees for his two teenage daughters.
Around the same time he was racking up credit card debts of more than €35,000.
At the time of filing for bankruptcy, Mr Drumm claimed his monthly outgoings exceeded his income by $1,168.
Meanwhile, a High Court judge hopes to give a decision soon on whether to grant an order to assist a US official administering the bankruptcy proceedings of Mr Drumm.
Ms Justice Elizabeth Dunne yesterday said she needed time to consider whether to grant an "order in aid" of those proceedings whereby all of Mr Drumm's creditors will be entitled to join in the distribution of his assets.