Drumm's credit card blowout
Ex-Anglo boss ran up €10,500 debt then filed for bankruptcy
Published 18/01/2011 | 05:00
FORMER Anglo Irish bank chief executive David Drumm maxed out a €10,500-limit credit card through spending on furniture, entertainment, fine wines and eating out in the weeks before he filed for bankruptcy.
The splurge included spending on Amazon.com, iTunes, Dunkin Donuts, several restaurants and off licences, as well as rug and pottery stores.
All the businesses feature in his final credit statement from Chase Bank which is now accusing him of fraud.
Details of the spending by Mr Drumm, who now lives in the US, emerged after the statement was included in documents filed with a court in Boston.
Among the larger purchases detailed in the credit card statement were $557 (€418) spent in a single visit to a fine wine store; $1,120 (€841) spent in a home furnishings store, and $1,299 (€975) in a mattress retailers.
Chase Bank is now suing Mr Drumm (44), claiming he committed fraud after making representations to have his credit limit extended.
The former banker filed for bankruptcy in Boston last October with debts of €10.26m.
He moved to Massachusetts in December 2008 after quitting his post at now nationalised Anglo after a scandal broke over loans to directors.
Gardai are seeking to question him over alleged major irregularities at the bank during his tenure.
In court filings, Chase said Mr Drumm racked up 'consumer debt' when he knew he would not be able to pay the money back.
Chase said Mr Drumm spent $14,293 (€10,758) between July 31 and October 14 last year, the day he filed for bankruptcy.
It said the money was spent during "the presumption period" -- meaning Mr Drumm used the card at a time he knew there was a strong possibility that he would soon be filing for bankruptcy.The bank said Mr Drumm incurred the debts when he "had no ability or objective intent to repay them".
It alleged Mr Drumm had "obtained credit by false representations and/or actual fraud".
Sums charged to the card include:
- $1,149 (€863) withdrawn from ATMs.
- $551 (€414) spent on purchases through the Amazon website.
- $417 (€313) spent in a Bloomingdales department store.
- $629 (€472) spent in the Follett Virtual bookstore.
- $1,120 (€841) spent at an Innuwindow home furnishing store.
- $1,000 (€750) paid to a Mercedes dealership.
- $557 (€418) spent at Marty's, a fine wine retailer in Newton, Massachusetts.
- $1,299 (€975) spent at Sleepy's, a mattress store.
- $556 (€417) paid to Stubhub, a concert and sports tickets retailer.
- $389 (€292) paid to Stonegate Gardens, a landscaping company.
Bills were also racked up in restaurants in Boston and Cape Cod, in clothing and pottery stores, health spas and hair salons.
The card was used for several purchases from iTunes, while Mr Drumm even charged a $3.80 (€2.85) bill at Dunkin Donuts and visit to Starbucks costing $5.30 (€3.98) to the card.
Chase is one of three US credit card companies owed money by Mr Drumm.
Mr Drumm also owes Capital One Bank $14,688 (€11,055) and Discover Bank $2,821 (€2,122).
Both sums were for credit card accounts opened just nine weeks before Mr Drumm filed for bankruptcy.
The former banker now lives in a $2m (€1.5m) home in Wellesley, an affluent town on the outskirts of Boston.
A house he and his wife own in Chatham on Cape Cod is currently being sold by Mr Drumm's bankruptcy trustee for $5.5m (€4.1m).
Half of the proceeds will go towards paying creditors.
Anglo is Mr Drumm's largest creditor. The bank is owed €8.5m, much of which was loaned to Mr Drumm so he could buy shares.