Thursday 29 September 2016

Anglo's former chief still in detention in a US cell

Sam Griffin

Published 12/10/2015 | 02:30

David Drumm, the former chief executive of Anglo Irish Bank, arrives at a courthouse in Boston to attend to a creditors’ meeting in 2010
David Drumm, the former chief executive of Anglo Irish Bank, arrives at a courthouse in Boston to attend to a creditors’ meeting in 2010

Former Anglo Irish Bank chief executive David Drumm has spent his second night in custody as he awaits an extradition hearing.

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He was arrested on Saturday and is being held in a detention centre near Brookline, Massachusetts, until he appears in court tomorrow morning.

Mr Drumm left Ireland for the US in 2009 as Anglo Irish Bank was collapsing and has remained there since, actively resisting efforts to have him returned here.

He originally resided at a $5m estate in Cape Cod before moving to a $2m home elsewhere in Massachusetts.

In January of this year, it is believed an extradition file was sent through diplomatic channels to US authorities which outlined the charges the former banker would face if he returned home.

The file, which was issued following a joint investigation by the Garda Bureau of Fraud Investigation and the Office of Director of Corporate Enforcement, may have contained up to 30 different charges to be preferred against Mr Drumm.

Additional information required for his extradition was also attached to the file, including sworn statements and court warrants issued in Ireland.

The Department of Foreign Affairs as well as the Department of Justice are involved in extradition cases.

The Department of Justice last night said it would not comment on the case.

However it is understood Justice Minister Frances Fitzgerald is being kept informed of developments.

In the US, Mr Drumm attempted to have himself declared bankrupt by a Massachusetts court in 2010.

He said this was done to avoid the sterner bankruptcy proceedings in Ireland.

His creditors, including the Irish Bank Resolution Corporation, and a court-appointed bankruptcy trustee Kathleen Dwyer, objected to Mr Drumm's attempt to be cleared of his debts and claimed he had intentionally tried to move assets worth around €1m beyond their reach by transferring them to his wife Lorraine.

However, Mr Drumm's bankruptcy bid ended in failure and the judge hearing the case, Frank Bailey, described the former banker as "not remotely credible".

The creditors also argued in court that he had lied under oath and made false statements with "fraudulent intent".

In a damning judgment, Frank Bailey said Drumm's conduct was "both knowing and fraudulent" and agreed with most of the arguments made by his creditors and upheld 30 of their 52 objections.

Plans for Mr Drumm to appear at the Banking Inquiry to give testimony on the role he played in the banking collapse, were also the subject of intense scrutiny earlier this year.

He refused to appear in person, despite being invited to do so, but offered to give evidence via video link.

But after consideration, this approach was rejected by the Banking Inquiry.

He did provide a written statement.

However, the inquiry opted not to make this public following a request by the Director of Public Prosecutions.

Irish Independent

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