Monday 23 April 2018

David Drumm blames alleged mistakes by former advisers in bankruptcy appeal

Former Anglo Irish Bank chief David Drumm
Former Anglo Irish Bank chief David Drumm
Shane Phelan

Shane Phelan

Former banker David Drumm has blamed mistakes allegedly made by his former US legal advisers as part of his bankruptcy ruling appeal.

The former Anglo Irish Bank boss has formally lodged his appeal against a decision by a US court to refuse him bankruptcy protection.

In the filings, made late last night, he claimed he fully informed his lawyers of more than €1m in cash and property transfers he made to his wife Lorraine.

Details of these transfers were not included in a statement of financial affairs, known as a SOFA, filed on Mr Drumm's behalf by the law firm.

A judge cited these omissions among the reasons for denying Mr Drumm bankruptcy protection in the US state of Massachusetts.

Judge Frank Bailey concluded Mr Drumm had knowingly and intentionally concealed the assets and transfers by failing to disclose them.

He found Mr Drumm had told "outright lies" to the court about his financial affairs and had "under oath, knowingly and fraudulently failed to disclose" asset transfers.

As part of his appeal, Mr Drumm is arguing that the judge made an error by not taking into account the fact he had told Boston law firm Looney and Grossman about the transfers before it filed the financial affairs statement on his behalf.

Most of the assets were passed to his wife's control in late 2008 as Anglo's share price plummeted.

Mr Drumm left the bank at the end of that year and moved his family to the US.

If he fails to win his appeal, his creditors will be able to take legal action to recover debts. Me Drumm owes creditors over €10m.

Most of the money was borrowed from Anglo Irish Bank, to buy shares which subsequently became worthless.

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