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Tuesday 16 September 2014

David Drumm asked lawyers to remove references to a Mercedes car and private school fees from bankruptcy papers, court told

Donal O'Donovan in Boston

Published 28/05/2014 | 18:18

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Former Anglo Irish Bank chief David Drumm leaves court after the third day of his trial in Boston (Photo by Bizuayehu Tesfaye/ Irish Independent)
Former Anglo Irish Bank chief David Drumm leaves court after the third day of his trial in Boston (Photo by Bizuayehu Tesfaye/ Irish Independent)

FORMER Anglo Irish Bank chief David Drumm asked his lawyers to remove references to a Mercedes car and private school fees from his bankruptcy papers, a US court has been told.

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The requests were made in emails to his former lawyer Heather Zelevinsky who helped prepare the paperwork filed on October 29 2010 and shown to the court today.

In an October 26 2010 email to Ms Zelevinsky Mr Drumm asked her to replace a reference to cars including a Mercedes surrendered at the start of the bankruptcy, replacing the luxury brand name it with more generic terms.

"Can you leave it as sedan and SUV, if the trustee doesn't care the media can go fish," he said.

Mr Drumm also asked in an October 28 2010 email for a reference to $34,200 of school fees paid for the 2010/2011 year by the Drumms to be removed form the paper work, because they had been paid by his business, or LLC, not by himself individually.

Earlier Mr Drumm and his wife Lorraine have arrived at court together for what is expected to be the final day of a case to decide whether the former bank boss can emerge from bankruptcy.

Property deals between the couple and transfers of more than $1m in cash from Mr Drumm and from the couple's joint bank accounts to Mrs Drumm in the two years before he sought bankruptcy are at the heart of the case.

Bankruptcy trustee Kathleen Dwyer and IBRC, the former Anglo Irish Bank, are trying  to block the former Anglo Irish Bank chief executive's discharge from bankruptcy in the US.

They claim that a failure to document the transfers in his original 2010 bankruptcy filing was an attempt to defraud his creditors, including the bank.

That makes Mr Drumm ineligible for the fresh start offered under the US system, the claim. In court, where he was cross examined for 10 hours last week David Drumm admitted to errors in his paper work but said it was based on the advice of his then lawyers.

The couple shared an umbrella as they arrived on foot at the court house in Boston's financial district.

David Drumm has been present for all of the previous four days of evidence wore a blue business suit, shirt and tie for the final day of evidenced.

His wife Lorraine Drumm is due to give evidence later today arrived in a dark dress, cream coloured jacked and gold belt.

US bankruptcy judge Frank Bailey has set aside five days to hear the case, which is due to end today. But he is not expected to hand down a verdict for several weeks.

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