Saturday 10 December 2016

Drumm defaulted on second credit card company

Shane Phelan Investigative Correspondent

Published 10/12/2010 | 05:00

A SECOND credit card firm has revealed how former Anglo Irish Bank chief executive David Drumm defaulted on his debts within months of opening a new account.

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Capital One Bank filed papers with a US court this week stating Drumm failed to pay a $14,688 (€11,125) bill on a credit card he received nine weeks before filing for bankruptcy.

The records filed by the bank provide further evidence that Drumm sought out lines of easy credit at a time when he should have known he might not be able to pay the money back.

Despite earning millions at the helm of Anglo, including €2.6m in 2008 alone, Drumm had a string of credit card debts by the time he filed for bankruptcy.

The latest court filings reveal the former banker received his Capital One credit card on August 9, just nine weeks before the bankruptcy petition was lodged on October 14.

Another financial institution, Discovery Bank, had already stated in court filings that Drumm defaulted on credit card debts totalling $2,821 (€2,135) just 10 weeks after opening an account with them.

Other credit card firms owed money by the former banker, including AIB, Chase Visa, and Citicards ExxonMobil, have yet to file documents supporting their claims.



Mansion

Drumm, who gardai wish to question over major irregularities at Anglo, fled Ireland two years ago as a series of scandals surrounding the bank began to emerge. He has so far refused to return to Ireland to cooperate with the authorities.

The former banker settled in Massachusetts where he and his wife bought a $4.6m (€3.28m) mansion on Cape Cod.

They later moved to a $2m (€1.4m) house in Wellesley, an affluent town on the outskirts of Boston.

Drumm filed for bankruptcy owing creditors €10.26m.

Some €8.5m of that is owed to Anglo. Most of the Anglo debt was from loans to Drumm so he could buy shares in the bank. However, these shares are now worthless following the bank's nationalisation.

He was questioned earlier this week by a bankruptcy trustee in Boston about his sources of income and the income of his wife Lorraine.

During the hearing, he admitted he was still sending his two daughters to a prestigious, private fee-paying school, despite his financial predicament.

He also admitted $210,000 in loans he received from his wife to set up a new financial advisory business was initially money he had earned himself.

The questioning is due to resume early in the New Year.

Lawyers for Anglo will also get the opportunity to question Drumm about his role in the bank's downfall at a meeting due to take place next month.

He has also been asked to produce a large amount of documentation about his finances.

Irish Independent

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