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Friday 29 August 2014

Judge in David Drumm trial seeks list of alleged 'fraudulent transfers'

Orlaith Farrell

Published 14/05/2014 | 02:30

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David Drumm, the former chief executive of Anglo Irish Bank. Photo: Chitose Suzuki
David Drumm, the former chief executive of Anglo Irish Bank. Photo: Chitose Suzuki

A US judge has asked for a detailed list of the alleged fraudulent transfers made and assets hidden from creditors by former Anglo Irish Bank boss David Drumm.

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At a pre-trial hearing in Boston yesterday, Judge Frank Bailey said that he wanted to know the "who, what, where, when" of "what you expect to prove".

Lawyers for the former Irish Banking Resolution Corporation (IBRC) and the court-appointed bankruptcy trustee Kathleen Dwyer are challenging Mr Drumm's discharge from debt, with the bankruptcy trial scheduled to take place next week.

At a pre-trial hearing yesterday, Judge Bailey said preparatory statements submitted by lawyers were the best that he had seen in his time in the bankruptcy court but that the additional information would be "enormously helpful" in making his ruling.

The legal teams have until Monday afternoon to submit the list before the trial starts on Wednesday.

IBRC plans on calling Mr Drumm (left) as its first witness in the trial and the judge has allowed the 47-year-old to be re-called after testimony from other witnesses.

David Mack, representing Mr Drumm, reminded the judge of a ruling he made two years ago blocking anything relating to Mr Drumm's role as chief executive of Anglo from being included during the trial. The disgraced banker resigned from Anglo in December 2008 and moved to the US in June 2009, where he filed for bankruptcy a year later.

IBRC and the trustee will try to block Mr Drumm from walking away from debt of more than €10m on the basis that he concealed assets and transferred money to his wife.

The former Anglo boss says that he transferred hundreds of thousands of euro to his wife in the autumn of 2008 as his marriage was "seriously strained" and failure to disclose others were honest mistakes.

The IBRC and trustee were granted permission to depose Boston lawyer Shari Levitan, who Mr Drumm talked to in 2009 about coming to the US to do business. The defence said that they would only call on Ms Levitan if the trustee submits evidence concerning Mr Drumm's transfer of their former home in Malahide to his wife in 2009. However, the judge allowed lawyers for the bank to question Ms Levitan ahead of any court appearance.

A ruling is likely in late summer.

Irish Independent

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