Thursday 29 September 2016

What charges is David Drumm facing?

Published 12/02/2016 | 02:30

David Drumm faces 33 charges on his return to Ireland (James Horan/Photocall Ireland)
David Drumm faces 33 charges on his return to Ireland (James Horan/Photocall Ireland)

Mr Drumm has yet to be charged with anything in Ireland, but a US court has heard he faces 33 charges on his return.

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He has indicated he will mount a defence against the charges.

Charge 1:

Disclosure of information in an interim management report which is false or misleading, in violation of Section 21 of the Investment Funds, Companies and Miscellaneous Provisions Act 2006.

Alleged offence: Anglo Irish Bank's half-yearly financial report of March 31, 2008 did not disclose the substantial CFD position built up by businessman Sean Quinn, even though Mr Drumm was fully aware of it.

Potential punishment upon conviction: Up to five years in prison

Charges 2-17:

Giving unlawful financial assistance by a company to a person for the purpose of, or in connection with, the purchase of shares in that company, in violation of Section 60 of the Companies Act 1963.

Alleged offence: Anglo loans €175m to the Quinn family and €45m to each of 10 individuals known as the 'Maple 10' to buy shares as part of an arrangement orchestrated by Mr Drumm to unwind Mr Quinn's CFD position.

Potential punishment upon conviction: Up to five years in prison per offence.

Charges 18-24:

Forgery, in violation of Section 25 of the Criminal Justice (Theft and Fraud) Offences Act 2001.

Alleged offence: Mr Drumm was responsible for creating false loan facility letters for seven members of the 'Maple 10'. These letters gave more favourable terms to the borrowers and interfered with Anglo Irish Bank's entitlement to recover the value of loans advance to the 'Maple 10' investors.

Potential punishment upon conviction: Up to 10 years in prison per offence

Charges 25-31:

Being privy to the falsification of a document as an officer of a company, in violation of Section 240 of the Companies Act 1990.

Alleged offence: As an officer of Anglo, Mr Drumm was privy to the falsification of the loan facility letters, which affected the financial affairs of Anglo.

Potential punishment upon conviction: Up to five years in prison per offence.

Charge 32:

Conspiracy to defraud, in violation of common law.

Alleged offence: Mr Drumm instructed an employee to approach Irish Life & Permanent to request they enter into a series of "back to back" transactions. Anglo gave IL&P €7.2bn and the money was retuned to Anglo through IL&P's corporate subsidiary, Irish Life Assurance plc. This allowed Anglo to present the €7.2bn as a corporate deposit in its end of year balance sheet on September 30, 2008.

Potential punishment upon conviction: An unlimited term in prison.

Charge 33:

False accounting, with the intention of making gain or causing loss to another by making use of an account that is false, misleading or deceptive in violation of Section 10 of the Criminal Justice (Theft and Fraud) Offences Act 2001.

Alleged offence: The "back to back" transaction was intended to bolster Anglo's corporate deposits in order to support its funding requirements.

Potential punishment upon conviction: Up to 10 years in prison.

Irish Independent

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