Wednesday 7 December 2016

Former Anglo Irish Bank chief executive David Drumm sensationally arrested by US marshals

Ex-Anglo chief to appear in court on Tuesday facing extradition

Jerome Reilly, Ronald Quinlan, Maeve Sheehan, Paul Williams and Allison Bray

Published 11/10/2015 | 02:30

David Drumm
David Drumm

Former Anglo Irish Bank chief executive David Drumm, holed up in the US for six years, has been sensationally arrested by US marshals in Boston, paving the way for his extradition to Ireland.

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An officer with the Brookline Police Station in Massachusetts told the Sunday Independent late last night that "the US Attorney's office is to issue a statement on Tuesday when Mr Drumm is due to appear in court".

It is understood that a decision was made in recent days by US authorities that the Irish application for extradition matches a similar charge in the US - a crucial step in a successful extradition process from the United States.

The Sunday Independent has learned that Mr Drumm was last night still in custody in a detention centre near Brookline, Massachusetts.

Senior Garda sources said they had received no official notification of the arrest but that all the material in relation to the extradition warrant had been passed to authorities in the US.

"The Department of Justice in Ireland passes the information to the US Department of Justice. It passes the material on to the federal authorities who in turn pass it on to local police," the source said.

"We always knew local police would be used to arrest him. We always knew where he was."

US courts are not in session on Monday due to Columbus Day - a national public holiday in America - so Mr Drumm, who is married with two children, will be arraigned on the first available court day, Tuesday.

It is understood that, as far back as January, an extradition file was sent via diplomatic channels to the US authorities, outlining possible charges to be preferred against the former banker upon his return to Ireland.

The Sunday Independent understands that the file also contains other evidence needed for an extradition process to begin, including sworn legal statements, confirmation of identity and court warrants issued in Ireland.

Sources suggest that the DPP has directed Mr Drumm be charged with up to 30 offences following a joint investigation by the Garda Bureau of Fraud Investigation and the Office of the Director of Corporate Enforcement.

A 100-page file prepared in Ireland includes an outline of the charges and the law in relation to the alleged offences, statements in relation to their gravity in Irish law, court warrants, identification evidence and information in relation to Mr Drumm’s circumstances in the US.

The Department of Foreign Affairs at Iveagh House and the Department of Justice are both involved in the extradition process.

Earlier this year Mr Drumm failed in his attempt to be declared bankrupt in Boston. It led to a damning denunciation in the US courts, with bankruptcy judge Frank Bailey describing Mr Drumm as “not remotely credible”.

The judge also accused Mr Drumm of fraudulent conduct as he refused to discharge his debts of over €10m.

Mr Drumm moved to the US, in early 2009 and subsequently filed for bankruptcy in 2010. He admitted in his court application that he wanted to become bankrupt in the US to avoid the bankruptcy process in Ireland.

Both the IBRC and the court-appointed bankruptcy trustee Kathleen Dwyer objected to his right to be freed from his debts, claiming that Mr Drumm had knowingly and fraudulently put assets beyond the reach of his creditors, mostly by transferring them to his wife Lorraine.

During bankruptcy hearings in 2014 they claimed the banker fraudulently transferred cash and proceeds from the sale of property and cars totalling over €1m to his wife.

They also set out allegations that he lied under oath on numerous occasions and did so knowing he was making false statements “with fraudulent intent”.

In all, the legal teams for both the IBRC and the court- appointed bankruptcy trustee lodged 52 objections to Mr Drumm’s discharge from his debts.

In a 122-page detailed and damning judgment, Mr Bailey agreed with most of their arguments, upholding 30 of the 52 objections, although he explained in his judgment only one finding was required to deny the discharge.

He said Mr Drumm was “not remotely credible” that his conduct was “both knowing and fraudulent”.

Judge Bailey added Mr Drumm had systematically transferred his assets to his wife to defraud his creditors, and was not a “bumbler,” but was “clearly a controlling type” who “knew what he was doing”.

Sunday Independent

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