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Saturday 22 October 2016

Drumm could have hidden cash to allow him flee the US, attorney claims

Published 13/11/2015 | 09:44

David Drumm
David Drumm

Former banker is a clear flight risk and cannot be trusted not to flee the US if released on bail, an Assistant United States Attorney has argued.

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The attorney also claimed Drumm may have hidden cash which would help him flee to a country without an extradition agreement with Ireland.

Amy Harman Burkart made the comments in a submission to a court in Boston ahead of a hearing today to determine whether the former Anglo Irish Bank chief executive should be released from custody.

Dubliner Drumm (49) has been held by US Marshals for the past month on foot of a request for his extradition to Ireland to face 33 charges, including fraud and false accounting.

He has argued that he is not a flight risk and should be set free to allow him prepare his defence of the extradition proceedings.

However, Ms Burkart told Judge Donald Cabell she believed he was a flight risk and there were no special circumstances that justify awarding him bail.

She said that while Drumm had sought to portray his move to Massachusetts in 2009, the year after the collapse of Anglo, as “a homecoming to the United States”, there was a competing version of events.

This was that “the Drumms essentially fled Ireland under difficult circumstances to start a new life in the United States”.

Ms Burkart also pointed to the findings of a Boston bankruptcy judge earlier this year. That judge, Frank Bailey, described Mr Drumm as “not remotely credible” and found he had lied about the transfer of €1m worth of cash and assets to his wife Lorraine.

In denying Drumm a discharge from his debts of over €10m, Judge Bailey said the former banker’s statements to the bankruptcy court were “replete with knowing false statements, failures to disclose, efforts to misdirect, and outright lies”.

Ms Burkart said these findings were significant.

“In seeking bail, Drumm is essentially asking this court to trust him. But he has already demonstrated to a court in this district that he cannot be trusted,” she said.

Pointing to Drumm’s refusal to return to Ireland following requests by gardai who wished to question him, Ms Burkart said: “Drumm has demonstrated to Irish law enforcement that he will not be cooperative.”

She added: “Given his unwillingness to provide meaningful cooperation to Irish law enforcement or go voluntarily to Ireland, there is a clear risk that, if released, he may go elsewhere, perhaps a country that does not have an extradition treaty with Ireland.

“Further, while the Drumm’s financial difficulties might, under other circumstances, suggest that his ability to flee is limited, that assumption is undercut here by the bankruptcy court’s findings regarding the ability and willingness of Drumm to conceal and shelter assets.

“The fact that Drumm has managed to maintain a wealthy lifestyle since he arrived in the United States in 2009, when he was over $11m in debt, attests to his ingenuity regarding marshalling resources to meet his purposes.”

The detention hearing will take place today at 10am Boston time.

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