Saturday 29 November 2014

Gardai are preparing to extradite Drumm from US over Anglo loans

Paul Williams

Published 30/04/2014 | 02:30

David Drumm, the former chief executive of Anglo Irish Bank
David Drumm, the former chief executive of Anglo Irish Bank
David Drumm

GARDAI are poised to file extradition papers for former Anglo Irish Bank chief executive David Drumm.

Authorities are waiting to be given the green light to extradite the ex-banker from the US to face charges relating to the collapse of the bank.

The Irish Independent has learnt that gardai and the Department of Justice are "ready" to begin the process of having Mr Drumm arrested as soon as the DPP decides the exact nature of the charges relating to illegal loans to the so-called Maple 10.

"The groundwork has been prepared," said a well-placed source.

A file from the Garda Bureau of Fraud Investigation (GBFI) has been with the DPP since late 2011 and a decision is expected imminently.

TABS

The Irish Independent can reveal that gardai have been "keeping close tabs" on Mr Drumm's movements in the US.

"A lot of the groundwork has been done in relation to international law concerning the extradition process and the physical procedures for bringing Drumm back to Ireland," a security source revealed last night.

"The gardai, through the Department of Justice, have been in informal contact with the US federal authorities to ascertain the procedures in the event that the DPP decides to charge him, which is highly likely at this juncture," the source added.

It is understood that officers have already been selected to go to the US to liaise with federal authorities there and bring Mr Drumm back to Ireland.

The former banker can only be extradited back to Ireland if the State can show that the offences with which he would be charged are also offences under US law.

Mr Drumm, who is facing a bankruptcy trial next month in Boston, left Ireland after stepping down as Anglo chief executive in December 2008.

He has ignored repeated requests from gardai to come home to answer questions.

"He will be brought straight before the court as soon as he steps off the plane," said a source.

However, it is expected that the former Anglo boss, who has been working as a consultant to a number of companies in New York and New Jersey, will fight any extradition bid.

Sources say that he will argue that he will not be able to get a fair trial in Dublin because of the public anger over the banking crash.

Mr Drumm gained infamy as a result of his colourful language and attitude to banking rules, which were contained in the Irish Independent's Anglo Tapes investigation last year.

During the recent trial in which Pat Whelan and Willie McAteer were convicted of providing illegal loans to the so-called Maple 10, Judge Martin Nolan described Mr Drumm as the "author" of the loans for shares transaction.

Barrister Brendan Grehan, representing Mr Whelan, also described Mr Drumm's absence from the trial as being like 'Hamlet' without the prince.

The former bank boss filed for bankruptcy in Massachusetts in 2010 but lawyers for the former Anglo Irish Bank and a court-appointed trustee objected, alleging that Mr Drumm fraudulently tried to hide assets and transferred large sums of cash to his wife Lorraine.

In papers filed with the bankruptcy court, the 47-year-old listed debts of $14.2m (€10.3m), most of which, €8.5m, is owed to his former employer. This was money he borrowed to buy shares in the bank, which are now worthless.

Mr Drumm's bankruptcy trial will start on May 21.

Creditors

Houses owned by the former bank boss and his wife in Cape Cod, Massachusetts, and in Malahide, Co Dublin, have already been sold for almost €3m and €1.4m respectively, with part of the proceeds going to creditors.

Mr Drumm took over from Sean FitzPatrick as Anglo chief executive in January 2005 and held the position until the end of 2008.

During the trial, the court heard that in interviews with gardai, Mr FitzPatrick said Mr Drumm told him the plan to lend to 10 individuals was "kosher and above board".

The plan was designed to help unwind Sean Quinn's holding in the bank in the middle of 2008, which had been obtained through complicated instruments called contracts for difference.

Irish Independent

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