Ex-Anglo chief Drumm quizzed on wife's jewellery and presents
Published 08/12/2010 | 05:00
THE former head of Anglo Irish Bank, David Drumm, was yesterday forced to answer detailed questions about his wife's jewellery, his children's Christmas presents and other assets that his creditors might seize in a US bankruptcy court.
Mr Drumm was answering questions in Boston about his personal wealth and his role in the bank's downfall.
He had agreed to be questioned by his former employers as part of bankruptcy proceedings in the US.
He has refused to returned to Ireland to be interviewed by gardai about major irregularities at Anglo.
Wearing a blue suit and accompanied by his Boston lawyers, Mr Drumm was ushered into the 21st-floor Boston law offices of trustees to answer questions for the first time in person about his wealth and holdings now that he's declared personal bankruptcy.
Coming across as calm and co-operative, Mr Drumm, who headed Anglo Irish until its dramatic collapse in early 2009, gave details about his homes in Ireland, Cape Cod and the upmarket Boston suburb of Wellesley.
But Kathleen Dwyer, representing creditors, pressed him on everything from his current cars to whether he bought presents for his children in excess of $500.
Once the proud owner of a Range Rover, BMW and other high-end cars, Mr Drumm said he now owns a 2005 Taurus which he recently purchased for $1,000 (€750); while his wife, Lorraine, drives a leased Ford Explorer from the Enterprise car rental company.
His two children were given computers for Christmas a year ago, both valued at more than $500 (€375), he said.
Asked about his wife's jewellery, he mentioned she owned engagement and wedding rings, though he didn't put a value on them.
Mr Drumm also acknowledged that his new financial consulting firm, Delta Corporate Finance of Boston, was financed with $210,000 (€158,237) from his wife.
He now receives $9,000-a-month (€6,781) salary.
"I'm the sole employee,'' he told lawyers.
While setting up a business to advise clients on their financial dealings, he also said he lost a bundle of money in a bad Cape Cod investment two years ago, sinking in $2.6m (€1.9m) to tear down and then rebuild a home in Chatham and then trying to sell it for a profit.
"Quite the opposite happened,'' Mr Drumm said.
"We missed the market in 2008.'' The home was eventually sold for $2.36m (€1.77m) last year, he said.
Garda fraud officers want to question Mr Drumm about irregularities at Anglo Irish before its meltdown but he's considered out of reach of Irish authorities until his bankruptcy case in the US is resolved. Anglo Irish is also pursuing Mr Drumm for what it insists are about €8m in loans the bank claims Mr Drumm hasn't paid back yet.
Mr Drumm's is expected to continue giving evidence until January 5 followed by questioning later that month by Anglo Irish lawyers over his final days as CEO of the bank.
Mr Drumm left Ireland two years ago after the first in a series of scandals surrounding Anglo began to emerge.
Anglo had 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 his $2m (€1.4m) home in Wellesley.
A €2m house in Malahide, Co Dublin, was placed into his wife's name last year.