Saturday 22 September 2018

David Drumm gets 15 month suspended sentence for providing unlawful loans to 'Maple 10' businessmen

David Drumm arrives at court for his sentencing hearing last month. Photo: Damien Eagers
David Drumm arrives at court for his sentencing hearing last month. Photo: Damien Eagers

Eimear Cotter

FORMER Anglo Irish Bank chief executive David Drumm has received a 15 month suspended sentence for providing unlawful loans to a group of businessmen known as the 'Maple 10'.

In sentencing Drumm, Judge Karen O'Connor said the defendant was in a "position of trust" in the bank, that he was the "instigator" of the scheme and that the markets were mislead.

The judge said Drumm's guilty plea had been of considerable assistance in what would have been a "lengthy and complex" trial.

Judge O'Connor sentenced Drumm to 15 months in prison which she said she would suspend for a period of 15 months on his own bond of €100.

David Drumm is already in prison for his role in a 7.2 billion euro fraud conspiracy at Anglo (Brian Lawless/PA)
David Drumm is already in prison for his role in a 7.2 billion euro fraud conspiracy at Anglo (Brian Lawless/PA)

Drumm (51), from Skerries in North County Dublin, is already serving a six year sentence for false accounting and a €7.2 billion conspiracy to defraud.

Wearing blue jeans and a green fleece sweatshirt, Drumm did not react when the sentence was handed down.

Last month, he pleaded guilty before Dublin Circuit Criminal Court to giving unlawful financial assistance to 10 businessmen so they could buy shares in the bank during the 2008 financial crisis.

Judge O'Connor heard evidence on Tuesday that the loans were given to unwind a massive secret stake former billionaire businessman Sean Quinn had built up in the bank using financial instruments known as contracts for difference (CFDs).

These allowed Mr Quinn to bet on the performance of the shares without actually owning them, but in reality he effectively had a 25 per cent stake in the bank.

Detective Sergeant Brian Mahon agreed with prosecution counsel, Paul O'Higgins SC, that after Drumm learned of the scale of the CFD position there was concern within Anglo it would affect the stability of the bank's share price.

Drumm then made efforts to find buyers for the shares in the Middle East and the US.

When none could be found, a scheme was arranged where Anglo issued loans to Quinn family members to buy a 15pc shareholding and to 10 wealthy clients of the bank to buy the remaining 10pc.

Sgt Mahon said that although paperwork was handled by Anglo staff, the transactions were instigated by Drumm, who he described as being "at the helm" of what had occurred.

A total of €451m in loans was issued to the so-called 'Maple 10' to buy the shares. There is no suggestion any of them did anything wrong.

Defence counsel Brendan Grehan SC had asked the judge to given Drumm "full allowance for his plea of guilt".

After a previous trial over the loans, two other former Anglo executives were sentenced to 240 hours community service.

Read more here: LISTEN: Anglo Tapes - Anglo boss David Drumm laughed as colleagues poked fun at bank's imminent collapse

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Nine-year Anglo probe ends as jailed Drumm admits unlawful loans 

Shane Phelan: The Anglo trials have shown the good, the bad and the ugly of white-collar investigations  

Who were the Maple 10 and why were they given loans to buy Anglo shares? 

From Anglo Irish Bank to Mountjoy: What prison life will be like for disgraced banker David Drumm  

Stiff sentence reflects role as 'driving force' of 'planned' conspiracy 

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