David Drumm to face fraud claims at US bankruptcy hearing
Published 20/05/2014 | 02:30
FORMER Anglo Irish Bank chief David Drumm faces potentially damning allegations of fraud and perjury when a five- day bankruptcy hearing kicks off in Boston tomorrow.
An itemised list of the "acts of fraud, misrepresentations, concealments, transfers or other predicate acts" allegedly perpetrated by Mr Drumm has been submitted to the court that will hear the case.
It was filed jointly by US bankruptcy trustee Kathleen Dwyer and the liquidators of IBRC, Mr Drumm's biggest creditor and former employer.
They said that allegations, which they claim can be proved against Mr Drumm, should block him being released debt-free from bankruptcy later this year.
The list details more than a dozen cash and property transfers, totalling millions of euro, allegedly made by Mr Drumm to his wife Lorraine in the two years before he sought to be declared bankrupt in the US in 2010.
The transfers outlined in the court filing include €760,000 in cash held in bank accounts, the proceeds from the sales of homes, property and luxury cars in Ireland and the US.
The list was compiled after Judge Frank Bailey, who is overseeing the case, asked for a comprehensive rundown of the allegations against Mr Drumm before the case gets under way tomorrow.
Mr Drumm will have a chance to defend himself against the allegations in person, when he takes the stand.
It will be his first public grilling since two of his former colleagues at Anglo Irish Bank, Willie McAteer and Pat Whelan, were found guilty at the central Criminal Court in Dublin of allowing the bank to make illegal loans to the 'Maple 10' group of investors, in a scheme the court heard Mr Drumm had been at the heart of.
Mr Drumm is set to argue that strain on his marriage and health around the time of the banking crisis meant he felt it correct to make sure his wife was provided for at the time the transfers happened.
He is expected to say that any errors in details he provided to the bankruptcy trustee were unintentional.
US bankruptcy trustee Kathleen Dwyer and the liquidators of IBRC, formerly Anglo, claim that cash transfers to his wife Lorraine Drumm defrauded creditors, including taxpayer-owned IBRC. They claim that Mr Drumm attempted to conceal assets that should have been declared under US bankruptcy, and made false statements.