Friday 30 September 2016

Drumm loses appeal against decision to reject bankruptcy

Sam Griffin

Published 24/11/2015 | 02:30

Ex-Anglo chief David Drumm
Ex-Anglo chief David Drumm

Disgraced former Anglo Irish Bank chief David Drumm has failed in his attempt to have a decision to reject his bankruptcy in the US overturned.

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The decision to reject Mr Drumm's appeal, which he made earlier this year, was announced late last night by a US district court judge.

Mr Drumm remains in custody and is currently fighting efforts to have him extradited back to Ireland where he would face a criminal trial in relation to 33 separate charges.

Mr Drumm first filed for bankruptcy in the US in 2010. But in a ruling last January, a judge found that Mr Drumm had made a number of omissions in papers he filed as part of his case.

Judge Frank Bailey concluded that Mr Drumm had knowingly and intentionally concealed assets and transfers he had made.

He found Mr Drumm had told "outright lies" to the court about his financial affairs and had "under oath, knowingly and fraudulently failed to disclose" asset transfers.

In total he rejected 30 of the 52 counts that came before him.

The former banker then appealed this finding.

In a 57-page submission Drumm blamed advice he allegedly received from his former US legal advisers for his failure to disclose €1m in assets transferred to his wife.

He said his lawyers had opted against including this information in financial statements filed by them on their client's behalf.

However Mr Drumm's appeal was rejected last night by US district court judge Leo T Sorokin.

He found Judge Bailey had acted correctly by not releasing Mr Drumm from his debts which total around €10m. In a 22-page written judgment, Judge Sorokin said he was satisfied having reviewed all the material that no mistake has been committed by the bankruptcy court.

He said there had been no error of law nor had there been any erroneous findings of fact.

The judge also dismissed the argument that Mr Drumm's legal representatives had told him not to disclose certain information.

Mr Drumm remained in custody last night after he was arrested in the US last month.

Irish Independent

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