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Thursday 2 October 2014

David Drumm - Q&A

Published 23/05/2014 | 02:30

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Q: Is David Drumm being prosecuted by US authorities in Boston?

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A: No, David Drumm is not subject to any criminal prosecution in the US.

He is at the centre of a civil case, part of his US bankruptcy process, which began in 2010.

The official or bankruptcy trustee managing his case and Mr Drumm's biggest creditor, the former Anglo Irish Bank, have objected to him coming out of that process debt-free.

Q Why?

A They say Mr Drumm is ineligible for the "fresh start" that most people who file for bankruptcy in the US get because, they claim, of the number and scale of errors in his original bankruptcy petition and because of transfers of cash and property to his wife in the two years prior to the bankruptcy that were not originally included.

Q What happens if they succeed?

A If the discharge from bankruptcy is blocked, Mr Drumm remains on the

hook for all of his debts, including €8.5m owed to IBRC, the former Anglo Irish Bank.

He would have to pay them back from future earnings, potentially out of a lifetime's worth of pay.

Q Who decides?

A US bankruptcy judge Frank Bailey in Boston is hearing the David Drumm case over five days.

He has said that he does not expect to make a decision straight away, but will consider all of the evidence and make a ruling later in the summer.

Q Is that it?

A That is the civil law sanction. In theory, if someone is found to have committed perjury during their bankruptcy process then they could be liable for criminal prosecution.

However, that is rare and lawyers say proving that an error in a document amounts to deliberate act is difficult, even where it is suspected.

If found guilty, though, it can mean a jail sentence.

Irish Independent

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