Former Anglo Irish Bank Chief Executive David Drumm fails in US bankruptcy bid
FORMER Anglo Irish Bank boss David Drumm will be held liable for debts of €10.5m after failing in his bid to exit bankruptcy with a clean financial start.
A judge in the US found Mr Drumm was “not remotely credible” and that this conduct in concealing asset transfers was “both knowing and fraudulent” in a damning judgement.
Mr Drumm was also accused in the judgment of telling "outright lies".
The disgraced banker learned of his fate tonight - seven months after a lengthy bankruptcy trial concluded in Boston.
Bankruptcy judge Frank Bailey concluded there were 30 reasonable objections against discharging Mr Drumm from his debts.
These included Mr Drumm's admission he made false claims under oath about the transfer of hundreds of thousands of euro in assets to his wife Lorraine.
The decision means Mr Drumm (48) will be liable for all of his debts and will not be afforded a clean financial start.
He faces financial ruin and a raft of legal cases as creditors seek to recover as much money as possible. Creditors will also be able to chase him for future earnings.
Both a court appointed trustee and the Irish Bank Resolution Corporation had objected to his discharge.
Judge Bailey found Mr Drumm was "not remotely credible" in his explanations.
In a 122 page judgment, he found Mr Drumm had knowingly made false statements, failed to disclose information and made efforts to misdirect the court.
He said this conduct disqualified Mr Drumm from the privilege of being discharged as a bankrupt.