Sunday 25 February 2018

Drumm to appeal failed bankruptcy on 18 grounds

David Drumm. Photo: Bizuayehu Tesfaye
David Drumm. Photo: Bizuayehu Tesfaye
Adam Cullen

Adam Cullen

Former Anglo Irish boss David Drumm has revealed the grounds in which he intends to appeal his failed bankruptcy bid in the US.

In legal papers filed with the Circuit Court of Appeal in Massachusetts on Wednesday, the disgraced banker outlined 18 questions he wishes to raise.

The US Bankruptcy Court rejected Mr Drumm's original application to be declared bankrupt and free from debts totalling almost €11m in January.

The ruling by Judge Frank Bailey found Mr Drumm had lied to the court and failed to disclose around €1m in cash and asset transfers made to his wife.

He later appealed the decision, but Judge Leo Sorkin dismissed the appeal, upholding the original refusal. In this appeal, Mr Drumm has posed eight questions relating to whether the Bankruptcy Court "erred" in law in its decision. A further 10 questions are directed at the District Court.

In court documents seen by the Irish Independent, Mr Drumm and his legal team ask "whether the Bankruptcy Court and District Court erred by concluding as a matter of law that Drumm made a false oath".

He also asks the courts whether they were mistaken when ruling that he had transferred property one year before the bankruptcy to "hinder, delay or defraud creditors."

The second appeal comes as Mr Drumm also gears up for a battle against a request to extradite him to Ireland where he will face 33 charges, including fraud and false accounting while serving as CEO of Anglo.

Last week it was announced that the 49-year-old would spend Christmas in the maximum-security Plymouth County Correctional Facility after being denied bail.

The decision was made following a bail hearing that took place in the Massachusetts District Court.

Drumm's lawyers argued that he should be released and placed on home confinement with electronic monitoring so he could continue working to support his family.

However, under US law granting of bail in cases of extradition is extremely rare except where there are exceptional circumstances.

Mr Drumm has lived in the Boston suburb of Wellesley since 2009, the year after he stepped away from the helm of the bank. The Dubliner has been held in a number of different prisons following his arrest by US Marshals on October 10.

His extradition case is scheduled to be heard next March.

Irish Independent

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