Thursday 18 December 2014

Lawyer tells of difficulty getting financial information out of David Drumm

Published 23/05/2014 | 21:56

Former Anglo Irish Bank chief David Drumm leaves court after the third day of his trial in Boston (Photo by Bizuayehu Tesfaye/ Irish Independent)
Former Anglo Irish Bank chief David Drumm leaves court after the third day of his trial in Boston (Photo by Bizuayehu Tesfaye/ Irish Independent)
Former Anglo Irish Bank chief David Drumm kisses his wife Lorraine outside court in Boston yesterday. (Photo by Bizuayehu Tesfaye/ Irish Independent)

A US court has heard how information about David Drumm’s finances had to be "drawn out" of him after he filed for bankruptcy.

Attorney Kathleen Dwyer was appointed his bankruptcy trustee in late 2010 when David Drumm filed for a Chapter 7 insolvency in the US.

She became aware that he had transferred cash to his wife, Lorraine Drumm, from the couples' joint accounts and his own sole accounts in the period before the bankruptcy "principally through review of bank statements as they came in," she said.

As bankruptcy trustee who was managing his case, her job was to collect and liquidate his assets to pay off creditors, she told a US court today.

Given his education and work background, Ms Dwyer regarded David Drumm as someone with a "very sophisticated understanding of financial matters", she said.

Information about his finances "had to be drawn out from him" through a "series of requests", she told the court.

The former Anglo Irish Bank chief executive gave evidence in court in Boston earlier this week.

The case is to decide whether the former bank chief can emerge debt-free from a Chapter 7 bankruptcy which he applied for in 2010 after moving to the US the previous year.

IBRC, the former Anglo Irish Bank, and the bankruptcy trustee managing the case have objected to Mr Drumm being discharged from bankruptcy, something that would allow him a fresh financial start.

They claim cash and property transfers and errors in his original bankruptcy filing amount to fraudulent transfers and make him inelligible to emerge debt-free.

Mr Drumm had told the court earlier this week that he applied for bankruptcy in the US after an attempt to reach a settlement with Anglo Irish Bank over his €8.5m debt to the bank failed.

The US bankruptcy option was a “fallback”, he said.

The potential outcome of going bankrupt in Ireland was viewed as something that would be a “total disaster” for Mr Drumm, the court was told.

“At the time it was a 12-year process,” he said.

The case continues.

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