Monday 27 February 2017

'Broke' Drumm paying €10,000 a month to run luxury homes

Shane Phelan Investigative Correspondent

David Drumm's home in Malahide
David Drumm's home in Malahide
Drumm's property in Chatham, Massachusetts
David Drumm and his wife Lorraine in Cape Cod

'BROKE' former Anglo Irish Bank chief executive David Drumm is spending almost €10,000 a month running two luxury homes he no longer lives in.

US court records reveal the running costs of his mansions in Cape Cod, Massachusetts, and Malahide, Co Dublin, will come to €47,970 for the period between November this year and March of 2011. That works out at an average of €9,594 a month.

The revelation came as a US bankruptcy trustee yesterday formally put the Cape Cod property on the market with an asking price of $5.5m (€4.2m).

Half of the proceeds of the sale will go to Mr Drumm's wife, Lorraine.

Dublin-born Mr Drumm, who has reinvented himself as a financial adviser in the US, filed for bankruptcy last October owing €8.5m to his former employers and a further €1.8m to other creditors, including several credit card companies.

He fled Ireland for the US in December 2008, shortly after his resignation from Anglo over a loans-to-directors scandal.

Gardai want to question him about major irregularities at the bank and have sent files to the Director of Public Prosecutions.

However, Mr Drumm (44) has refused to return home for questioning.

Records filed as part of the bankruptcy process reveal a host of expenses being paid each month to maintain two mansions he co-owns.

The expenses are being met despite the fact that Mr Drumm no longer lives in either home and claims to have no funds.

The so-called 'carrying costs' include maintenance, sprinkler systems, snow removal, alarm monitoring, telephone, gas and electricity.

Mortgage payments, real estate taxes and home insurance premiums are also listed among the costs.

Mr Drumm and his family have not lived in either property for some time.

He relocated earlier this year to a $2m (€1.4m) house in Wellesley, an affluent commuter town on the outskirts of Boston.

However, he has continued paying significant costs to maintain his two other homes.

The average monthly cost of running the Cape Cod mansion, a picturesque waterfront property in the town of Chatham, is more than $10,500 (€8,000).

His mansion in Malahide, in the exclusive Abington estate, has average monthly running costs of around €1,500.

As part of a deal with bankruptcy trustee Kathleen Dwyer, these costs will now be met by Mr Drumm's wife until at least April 30 next, by which time it is hoped the Chatham mansion will have been sold.

The property was formally put on the market yesterday, despite efforts by Mr Drumm to have it exempted from his bankruptcy case.

PLEDGE

Last month Mr Drumm applied for court approval to allow him to reaffirm loans on the mansion, meaning he would pledge to clear the debt outside of bankruptcy proceedings.

He bought the property for $4.6m (€3.4m) in 2008, taking out a $1.1m (€850,000) mortgage.

However, Ms Dwyer, who has been appointed to administer his assets, refused to exclude the mansion from the bankruptcy proceedings.

In court filings she said a local realty company had been instructed to put the house on the market for $5.5m (€4.2m) up until the end of April. If it does not sell between now and then the sale price is likely to be reassessed.

"The net proceeds of the sale of the Chatham property shall be distributed equally between the trustee and Mrs Drumm," Ms Dwyer said in an affidavit.

The disclosure comes just days after an accountancy watchdog said it would be convening a tribunal over deals involving Mr Drumm and other former Anglo figures.

It is not yet clear whether Mr Drumm will return home for the hearing, which is scheduled for next April.

If it finds against Mr Drumm, the Chartered Accountants Regulatory Board (CARB) can fine him €30,000 and ban him from practising.

Any ban in Ireland is likely to have a major impact on his ability to get work in the US, where his visa is conditional on his involvement in substantial business investment.

CARB says Mr Drumm has questions to answer over several issues.

CAPTION: David Drumm and his wife Lorraine in Cape Cod. Top right: Their home in Malahide and (right) their property in Chatham, Massachusetts.

Irish Independent

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