Tuesday 6 December 2016

David Drumm: Wife Lorraine Drumm attends court for husband's extradition hearing

Exclusive: The full list of 33 criminal charges he is facing

Shane Phelan Public Affairs Editor

Published 13/10/2015 | 12:16

Lorraine Drumm, David Drumm's wife, arrives at the federal courthouse in Boston, Oct. 13, 2015 before the Drumm's extradition hearing
Lorraine Drumm, David Drumm's wife, arrives at the federal courthouse in Boston, Oct. 13, 2015 before the Drumm's extradition hearing
Lorraine Drumm, David Drumm's wife, arrives at the federal courthouse in Boston, Oct. 13, 2015 before the Drumm's extradition hearing
David Drumm and (inset) his arrest warrant

The wife of David Drumm has arrived at the Boston courthouse where her husband David Drumm is set to appear before a judge in an extradition hearing.

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Wearing a navy shirt dress and opaque tights, Lorraine Drumm made no comment as she made way into the courthouse.

Her husband, who was in the custody of US marshals since his arrest on Saturday, was conveyed to the courthouse separately.

A vehicle carrying Mr Drumm went to the courthourse via an underground tunnel which brings him directly to the complex. This route is used by authorities when bringing people who are in custody to the court.

Earlier today, it was revealed the fugitive banker is facing 33 criminal charges – the most serious of which carries an unlimited term of imprisonment.

Documents obtained by independent.ie reveal the full list of charges the 48-year-old former Anglo Irish Bank chief executive is facing.

John Joseph Moakley United States Courthouse in Boston (Photo by Chitose Suzuki)
John Joseph Moakley United States Courthouse in Boston (Photo by Chitose Suzuki)
John Joseph Moakley United States Courthouse in Boston (Photo by Chitose Suzuki)

They include counts of false reporting, giving unlawful financial assistance, forgery, being privy to the falsification of documents, conspiracy to defraud and false accounting.

The charges he faces are:

* One count of disclosing information in an interim management report which was false or misleading, in violation of Section 21 of the Investment Funds, Companies and Miscellaneous Provisions Act 2006. The offence carries a maximum five year jail term.

* 16 counts of giving unlawful financial assistance to a company or person to purchase shares in that company, in violation of Section 60 of the Companies Act 1963. This carries a maximum five year jail term;

Lorraine Drumm, David Drumm's wife, arrives at the federal courthouse in Boston, Oct. 13, 2015 before the Drumm's extradition hearing
Lorraine Drumm, David Drumm's wife, arrives at the federal courthouse in Boston, Oct. 13, 2015 before the Drumm's extradition hearing

* Seven counts of forgery, in violation of Section 25 of the Criminal Justice (Theft and Fraud Offences) Act 2001, which carries a maximum sentence of ten years;

* Seven counts of being privy to the falsification of documents, in violation of Section 240 of the Companies Act 1990. This carries an unlimited term of imprisonment;

* One count of conspiracy to defraud, in violation of common law, which also carries an unlimited term;

* One count of false accounting with the intention to make a gain or cause loss to another by making use of an account that is false, misleading or deceptive in violation of Section 10 of the Criminal Justice (Theft and Fraud) Offences Act 2001. This carries a maximum ten year term.

The alleged offences were outlined in a submission to a court by Assistant United States Attorney Amy Harman Burkart on October 5.

The document remained sealed until this morning.

Mr Drumm’s alleged failure to disclose information in an interim management report relates to Anglo’s failure to disclose the massive contracts for difference (CFD) position built up in the bank by former billionaire Sean Quinn.

The 16 counts of allegedly giving unlawful assistance to buy shares relates to loans given to members of the Quinn family and the so-called ‘Maple 10’ to buy shares in Anglo.

The seven charges in relation to forgery and seven charges of being privy to the falsification of a document relate to alleged “false loan security letters” created for Maple 10 investors.

The document states the conspiracy to defraud and false accounting charges relate to alleged loans totalling €750m and €7.2bn involving Anglo and Irish Life and Permanent.

These transactions are alleged to have given a distorted view of Anglo’s half yearly financial position in 2008.

Mr Drumm has been living in Massachusetts since 2009, having quite Anglo the previous year.

Since moving to the US he has been involved in a protracted bankruptcy case, ultimately being denied bankruptcy protection after lying about the transfer of around €1m in cash and other assets to his wife Lorraine.

Gardai investigating matters at Anglo had requested on a number of occasions that he return to Ireland to face questioning.

However, he refused to comply with these requests and has claimed in interviews that he could not get a fair trial in Ireland.

Today a US judge will decide today whether his arrest by US marshals at the weekend was lawful in a probable cause hearing in Boston.

It is the first step in what is expected to be a lengthy process before a decision is made on whether Mr Drumm is to be extradited to Ireland.

Today’s hearing will determine whether or not US marshals acted correctly when they complied with a request from Irish authorities for the detention of the former Anglo Irish Bank chief executive.

Mr Drumm was arrested at his $2m (€1.75m) home in Wellesley, on the outskirts of Boston, on Saturday.

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