Wednesday 19 September 2018

Prosecution in David Drumm trial concludes after three months of evidence

David Drumm denies taking part in a plot to defraud. Picture: Collins
David Drumm denies taking part in a plot to defraud. Picture: Collins

Andrew Phelan

The prosecution in the trial of former Anglo Irish Bank CEO David Drumm has closed its case.

The jury was told this morning that evidence for the prosecution has now been completed, after testimony from the final witnesses was heard yesterday.

This brings to an end more than three months of evidence since the State opened its case in the long-running fraud trial in February.

The jurors have been sent home for the day while Judge Karen O’Connor hears an application being made by the defence in their absence.

Mr Drumm (51) is pleading not guilty to conspiring to defraud by dishonestly creating the impression that Anglo's customer deposits were €7.2bn larger than they really were in September 2008.

He is alleged to have conspired with Anglo’s former Finance Director Willie McAteer and head of Capital Markets John Bowe, as well as Irish Life and Permanent’s then-CEO, Denis Casey, and others.

The case centres on a series of interbank deposits which circulated between Anglo and ILP.

The transfers were routed through Irish Life Assurance (ILA), returning to Anglo where they were then treated as customer deposits, which are a better indicator of a bank’s health.

Mr Drumm also denies false accounting, by providing misleading information to the market.

When the jury of ten men and four women took their seats at Dublin Circuit Criminal Court today, prosecutor Paul O’Higgins SC addressed the court.

“The prosecution has completed its evidence and the prosecution’s case is closed,” he said.

“At this point there is a defence application the court will have to consider,” Brendan Grehan SC, defending said.

“The prosecution’s evidence has concluded in this case and there is a matter I now have to hear in your absence,” Judge O’Connor said.

She told the jury she was not yet able to answer an earlier question they had about days that they might not be required to come to court.

She said she would be in a much stronger position tomorrow or on Thursday to indicate the remaining timeframe.

The jury was sent out for a short time and when they returned, Judge O’Connor said she was not going to detain them any further today and asked them to return tomorrow.

The jury was sworn in in January and had been hearing evidence since the prosecution's case opened before them on February 9.

Yesterday, final evidence was heard from two stockbrokers who attended Anglo’s presentation of its end of year preliminary results on December 3, 2008, and analysed them for investors.

Eamonn Hughes and Ciaran Callaghan gave evidence that if €7.2bn were taken from Anglo’s customer deposits, it would have negatively affected the bank's loan to deposit ratio - a “key metric” for investors.

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