Sunday 4 December 2016

Drumm's debt spiral

Published 22/10/2010 | 05:31

FORMER Anglo Irish Bank boss David Drumm has a string of unpaid credit-card and car-loan debts.

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Documents obtained by the Irish Independent reveal how Mr Drumm's personal finances mirror the chaotic manner in which the now-nationalised bank was run. The documents show how Mr Drumm:

* Failed to pay off debts run up on at least four different personal credit cards before he filed for bankruptcy in the US last week.

* Owes further sums to a US car finance firm.

* Amassed debts with a US bank specialising in sub-prime lending.

The former chief executive, who now lives with his wife Lorraine in Massachusetts, also owes money to relatives in Ireland.

The identities of companies and people owed money by the former Anglo chief executive were revealed in a list of creditors seen by the Irish Independent.

Gardai are looking to question Mr Drumm (44) as part of a fraud bureau inquiry into major irregularities at Anglo.

But so far, he has refused to return home to be interviewed.

The disclosure of Mr Drumm's creditors came as the head of the Dail public spending watchdog described him yesterday as a "fugitive from accountability".

"It appears that Mr Drumm is still running rings around the State.

"For all our constituents who will be grappling with Budget cutbacks, it has all the hallmarks of one law for the rich and one law for the poor," Public Accounts Committee chairman Bernard Allen said.

His comment came days after Finance Minister Brian Lenihan told the Dail that Mr Drumm could be extradited from the US to face prosecution here.

Despite his apparently perilous financial situation, Mr Drumm was still able recently to relocate from a $4.6m (€3.28m) mansion in Cape Cod to another home worth $2m (€1.4m) in Wellesley on the outskirts of Boston.

The exact amount owed to each of Mr Drumm's creditors has yet to be disclosed, but bankruptcy officials have instructed him to supply this information by the end of next week. A meeting with creditors will take place in Boston a few weeks later.

It is already known that Mr Drumm owes Anglo almost €8.5m.



WORTHLESS

Most of the Anglo cash was used to buy shares in the bank, but these are now worthless following nationalisation.

The creditors' list reveals the Anglo debts involve four separate sums drawn from the bank's headquarters on St Stephen's Green in Dublin and a fifth sum drawn from its branch at Franklin Street in Boston.

Other banks owed money by Mr Drumm include the Cape Cod Five Cents Savings Bank and sub-prime lender GE Money.

He also owes money to KBC Homeloans in connection with a house he and his wife own in Skerries, Co Dublin.

Debts are owed on AIB and Chase Visa cards, a Citicards Exxon Mobile credit card and a Discover credit card.

Capital One USA, a bank specialising in credit cards, home loans and car loans, is also owed money.

Further creditors include Dublin law firm Eversheds O'Donnell Sweeney, public relations adviser Dan Pender and two of his relatives, Mary and Susan Drumm.

Mystery surrounds the ownership of Mr Drumm's new six-bedroom home in upmarket Wellesley.

The 4,105 sq ft house was bought by an unnamed party last January.

Land records only showed its registration was being held by a trust, which has refused to disclose the identities of the true owners.

Mr Drumm ran Anglo's business in the US for five years before returning to Ireland in 2003.

He succeeded disgraced banker Sean FitzPatrick as chief executive of Anglo in 2005, but resigned three years later after it emerged Mr FitzPatrick had been hiding loans of €87m from shareholders.

Mr Drumm subsequently fled back to the US and had been living in Cape Cod until recently.

Gardai are hoping he will return home voluntarily to face questioning about a number of matters.

Officers have already arrested and questioned Mr FitzPatrick and another former Anglo executive, ex-finance director Willie McAteer.

Both were released without charge.

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