Monday 5 December 2016

Former banker David Drumm fails in second bid to be released on bail

Published 11/01/2016 | 23:16

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

Former banker David Drumm has failed in a second bid to be released on bail pending the outcome of proceedings to extradite him from the US to face fraud and false accounting charges.

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However, a judge has signalled there will be a review of his security in prison after his lawyers argued he was being held in “intolerable and inhumane” conditions that have impacted his ability to confer with his legal team and subjected him to“safety risks".

Boston District Court Judge Richard Stearns last night affirmed an earlier decision by a lower court to deny the former Anglo Irish Bank chief executive's initial application for bail pending the hearing, which is scheduled for March 1.

But he asked a magistrate judge to re-examine the issue of Mr Drumm's safety and make any orders which would help him work with his lawyers, as long as they were consistent with jail security.

Mr Drumm (49) has been held at the Plymouth County Correctional Facility, a maximum security jail south of Boston.

The exact nature of Mr Drumm's security fears have not been disclosed.

The court has kept these "under seal", so they cannot be publicly revealed.

"I will not discuss the specifics," said Judge Stearns.

In his ruling, he rejected several arguments put forward by Mr Drumm's legal team in favour of his release.

Among these was a claim that Mr Drumm's wife Lorraine and their two daughters were utterly dependent on his income.

He said the lower court's rejection of this ground was not callous, but "an accurate observation that this circumstance is not special [and] one that applies to most incarcerated defendants".

He also found the lower court was right not to be swayed by claims there was a seven-year delay by authorities in Ireland in seeking Mr Drumm's extradition.

"That may well stem from his implicit recognition that the length of the investigation by the demanding State is not a matter of concern for the receiving state," said Judge Stearns.

He said that Mr Drumm’s relocation to the United States, “at least in part” forestalled the bringing of charges against him.

The judge said it would be up to the courts in Ireland to decide whether any statute of limitations or other rights had been breached.

He also rejected a claim by Mr Drumm's lawyers that there was a lack of “diplomatic necessity” for his extradition.

The ruling also explained that there was no presumption of bail being issued in extradition cases in the US.

The position in Ireland is the opposite, with bail being granted in most instances.

Mr Drumm has been in custody since his arrest by US Marshals at his €1.75m home on the outskirts of Boston on October 10.

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