Drumm drops attempt to keep $500,000 from sale of US home
Published 03/11/2011 | 05:00
DISGRACED former Anglo Irish Bank chief executive David Drumm has dropped his bid to keep $500,000 (€364,000) from the sale of one of his US homes.
Mr Drumm yesterday withdrew a court bid to have the Cape Cod property designated his principal residence.
Such a designation would have allowed Mr Drumm benefit from a 'homestead exemption', which under US law entitles bankrupts to retain $500,000 from the sale of their home.
Mr Drumm did not give any explanation for dropping the case.
He filed papers at the last minute yesterday saying he was withdrawing. A hearing which had been scheduled to take place before Boston bankruptcy judge Frank Bailey was cancelled.
The bankruptcy official overseeing the liquidation of his assets, Kathleen Dwyer, had objected to Mr Drumm's attempts to claim the exemption.
She argued that as Mr Drumm was only in the US on a temporary visa, he could not claim the house, in Chatham, Massachusetts, was his principal residence. As a result, Mr Drumm will not benefit in any way from the sale of the property, which is set to fetch $3.88m (€2.8m).
Instead, proceeds of the sale will go towards paying Mr Drumm's creditors.
The exclusive Chatham property was one of six houses Mr Drumm bought in Massachusetts in the past 10 years.
He currently lives in Wellesley, an upmarket suburb of Boston.
Mr Drumm left Ireland and moved to the US in December 2008, shortly after resigning as chief executive of Anglo.
He later filed for bankruptcy in Boston after being pursued by Anglo for €8.5m he borrowed from the bank.
Most of the money was borrowed to buy shares in the institution. But these shares became worthless after the bank was nationalised.
Gardai are continuing to seek his assistance in relation to inquiries into major irregularities during his tenure at the bank.
However, he has so far refused to return home for questioning.
Mr Drumm's US visa expires next month, according to testimony he gave in court last April.
It remains unclear whether he will be allowed remain in the US after this time.