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Tuesday 20 March 2018

Drumm earns $9,000 a month as financial adviser in US

Shane Phelan Investigative Correspondent

Court records show he failed to adjust to the drop in income and was living beyond his means when he filed for bankruptcy last month

FORMER Anglo Irish Bank boss David Drumm is making $9,000 (€6,500) a month from giving financial advice, the Irish Independent has learned.

The former bank chief executive, who is filing for bankruptcy and is wanted for questioning by gardai over major irregularities at Anglo, revealed the income in court documents filed in the US over the weekend.

He told court officials he was paid the wage from Delta Corporate Finance (DCF), a company he set up in Boston, Massachusetts, in January 2009.

The business offers real estate consulting and financial advice, targeting company CEOs and senior managers.

However, Mr Drumm's past with Anglo is not mentioned in any of its promotional literature.

It was set up by Mr Drumm just a month after he resigned from Anglo following revelations that the bank's then chairman, Sean FitzPatrick, had been hiding loans of €87m.

The salary taken by Mr Drumm from DCF is just a fraction of the €2.6m he earned in his last year with Anglo Irish in 2008.

Court records show he failed to adjust to the drop in income, and was living beyond his means when he filed for bankruptcy last month.

Basic personal debts, including relatively small sums of money owed on credit cards, were not being paid.

He claimed in the court documents his monthly expenses totalled $10,605 (€7,620), leaving him with an after-tax loss per month of $1,168 (€840).

The court records also outline for the first time the full extent of Mr Drumm's financial difficulties.

His liabilities are listed as being $14,279,044 (€10,260,144) but his assets come to just $13,906,395 (€9,992,379). His major creditors include:

  • Anglo Irish, which is owed $11,963,482 (€8,596,307).
  • Cape Cod Five Cents Savings Bank, owed $1,164,884 (€837,022).
  • Solicitors Eversheds O'Donnell Sweeney, owed €248,927.
  • KBC Homeloans, owed €252,245.
  • His wife, Lorraine, owed €210,347 from various loans.

A further €18,486 is owed on an AIB Visa card, $14,368 (€10,324) on a Chase Mastercard, $6,000 (€4,311) on a Citicards Exxon Mobil credit card, and $2,821 (€2,027) on a Discover credit card.

Mr Drumm lists his main asset as his Anglo Irish defined-benefit pension pot, which he valued at $5,152,130 (€3,702,040). Other large assets include:

  • A 50pc interest in his luxury mansion in Chatham on Cape Cod, valued at $2.95m (€2.1m).
  • Half of his home at Abington in Malahide, Co Dublin, valued at $1,477,770 (€1,061,845).
  • A 50pc stake in a house in Skerries, Co Dublin, valued at $161,851 (€116,297).

He also includes in his list of assets a claim against Anglo for $3,688,366 (€2,650,259), even though this has yet to be adjudicated on by the courts.

This includes a claim of €1.2m in unpaid salary, €715,224 for an unpaid payment he claims was due in lieu of a pension obligation, €44,471 in unpaid benefits, and a deferred bonus from 2006 worth €661,000.


Mr Drumm also listed a variety of items that would be unlikely to command any significant resale value. These included books, CDs and iPods he valued at $500 (€359), clothing, $200 (€143), a watch, $200, a wedding band, $200, computers and printers, $100 (€71), a bicycle, $400 (€286), and a set of golf clubs $500 (€359).

He also put a $1 value on his pet dog.

Mr Drumm will come face to face with his creditors at a meeting scheduled to take place at a Boston court house later this month.

However, he has so far refused to come home to speak to gardai investigating irregularities at Anglo.

Irish Independent

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