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Friday 29 August 2014

Drumm 'clearly showed intent to defraud', Anglo attorney tells court

Bev Ford

Published 04/06/2014 | 18:00

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David and Lorraine Drumm leave a Boston courthouse after Lorraine Drumm was called to testify in the bankruptcy trial of her husband, former Anglo Irish Bank chief executive David Drumm. Photo: Josh Reynolds
David and Lorraine Drumm

Disgraced banker David Drumm fraudulently transferred money to his wife, tried to obscure his ownership of $2m home and deliberately underestimated the value of his personal property, an attorney for the now defunct Anglo Irish Bank told a US bankruptcy court this morning.

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John Hutchinson, attorney for Irish Bank Resolution Corporation, said in closing arguments that Mr Drumm "clearly showed intent to defraud" when he filled out paperwork.

He said that Mr Drumm omitted more than $1m in transfers to his wife, covered up the purchase of a home in a swanky Boston suburb and failed to disclose the value of nearly $500,000 in furniture and two cars valued at $100,000.

Mr Drumm's attorney, David Mack, however, said his client included all the money transfers to his wife on a draft form but failed to properly record that information in  his bankruptcy filing.

"This case was nothing but a witch hunt," said Mack. "There's not a shred of evidence to show Mr Drumm was trying to hide these transfers from anyone," he added, noting that Drumm's advisors also didn't notice that he made an error when listing the cash transactions to his wife.

"It was a perfect storm," said Mack. "Three individuals perceived things differently."

US Bankruptcy Court Judge  Frank J. Bailey will review the more than 200 exhibits presented in the case before deciding within the next few months whether to discharge Mr Drumm's bankruptcy claim.

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