Monday 5 December 2016

Drumm faces challenge to €10m US bankruptcy appeal

Published 16/05/2015 | 02:30

Mr Drumm blamed advice he allegedly received from his former US legal advisers for his failure to disclose €1m in assets transferred to his wife
Mr Drumm blamed advice he allegedly received from his former US legal advisers for his failure to disclose €1m in assets transferred to his wife

Lawyers for IBRC have challenged former bank boss David Drumm's appeal of his US bankruptcy refusal.

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Mr Drumm has been living in the US since leaving Anglo Irish Bank in late 2008. He filed for bankruptcy with debts of €10.5m in October 2010.

But Judge Frank Bailey found he had told "outright lies" to the court and "under oath, knowingly and fraudulently failed to disclose" asset transfers.

Mr Drumm last month lodged his grounds of appeal against the decision to refuse him bankruptcy protection.

Mr Drumm blamed advice he allegedly received from his former US legal advisers for his failure to disclose €1m in assets transferred to his wife.

But in documents filed last night, lawyers for IBRC and the court-appointed bankruptcy trustee Kathleen Dwyer argued that the judge was correct.

The legal papers say Mr Drumm earned €18m at the bank from 2004 to 2009 and as it collapsed "started transferring virtually all of his cash to his wife, Lorraine Drumm".

"Drumm transferred extensive assets to his wife in the two years preceding bankruptcy - including over a million dollars in cash, interests in several parcels of real estate, and the proceeds of multiple asset sales." It adds: "The bankruptcy court found that Drumm repeatedly contradicted himself and responded with evasive answers, half-truths and lies when he was questioned about these transfers."

Mr Drumm has claimed that he fully informed his lawyers of cash and property transfers he made to his wife Lorraine. He maintained his lawyers opted not to include these in his statement of financial affairs.

But in the legal papers filed yesterday, it is claimed "Drumm alone is responsibly for the dishonesty that earned him a denial of discharge."

Mr Drumm's lawyers now have an opportunity to reply to the arguments put forward.

Irish Independent

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