Saturday 21 January 2017

Drumm transferred €550,000 to wife just before he left Anglo

Jerry Kronenberg in Boston

Published 06/01/2011 | 05:00

FORMER Anglo Irish Bank boss David Drumm transferred €550,000 into his wife's US bank account in the same month he quit as chief executive, it emerged last night.

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Mr Drumm (44) made the admission under questioning at a deposition hearing in Boston, where he is filing for bankruptcy with debts of over €10m.

The former banker, who gardai wish to question over major irregularities during his time at the lender, transferred the funds in December 2008.

The same month he quit the bank and fled to the US after a scandal broke over the concealment of loans to directors.

Speaking under oath, Mr Drumm yesterday told bankruptcy trustee Kathleen Dwyer he wired much of the money to the US bank account because "it was in (an Irish) checking account not earning interest (and) I would have liked it to earn interest".

The former chief executive said the funds came from a combination of his wife Lorraine's investment in property at Skerries Rock in Dublin and his Anglo pay and bonuses.

He said that in his final month at the bank he was paid €92,000 after tax. In the same month he also received an after-tax payment of €372,000, which was made up of bonuses he was owed dating back to 2005.

The payments were made just weeks before the bank collapsed and had to be nationalised.

Mr Drumm told the trustee that he and his wife maintained several US and Irish bank accounts and often moved large sums of money between them.

Lavish

During the course of a 90-minute meeting he was questioned on various bank transactions.

He described a lavish lifestyle of buying and selling several US homes, purchasing a Land Rover, selling a BMW X5 and paying his children's private-school tuitions.

However, the former banker said he had since lost many of those assets and now drove a used Ford Taurus.

During the deposition, Mr Drumm often told the trustee that he couldn't remember exactly what some of his bank deposits or withdrawals covered.

Mr Drumm is now set for further questioning later this month from lawyers representing his former employers as part of the bankruptcy process.

Anglo has questioned whether Mr Drumm was involved in any "breaches of fiduciary duty", meaning failures to meet his legal or ethical obligations, while running the bank.

The bank has raised serious doubts over the accuracy of financial information he supplied to the US courts as part of his bankruptcy petition.

Mr Drumm is currently living in a $2m (€1.4m) home on the outskirts of Boston, which was purchased through a trust earlier this year.

Irish Independent

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