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Drumm's wife set to pick up €1m in home sales

DISGRACED banker David Drumm's wife is set to walk away with more than €1m after court cases are settled.

Lorraine Drumm has agreed to pay a settlement of $1.29m (€985,500) to avoid being sued over the alleged fraudulent transfer of cash to her by her husband.

The deal means that even after her ex-Anglo Irish Bank husband's bankruptcy case is dealt with, Mrs Drumm will remain a millionaire. She is set to collect the windfall once the couple sell off three properties which they jointly own.

Details of the settlement, which were filed in a Boston court yesterday, have raised eyebrows in Dublin.

The agreement, subject to approval by a US bankruptcy judge, comes after bankruptcy trustee Kathleen Dwyer filed a lawsuit against the Drumms.

She claimed the couple had worked together to transfer funds of over €1.1m to accounts held or co-held by his wife in an effort to put the cash beyond the reach of creditors.

The former Anglo chief executive has debts of over €10.2m, most of which is owed to his former employers.

Mrs Drumm and the trustee reached an agreement which will see her handing over just under €1m, set to be dispersed to her husband's creditors.

Once the settlement is paid she will be entitled to keep a share of the proceeds from three properties. One property in Chatham, Cape Cod, has already been sold for $2.4m (€1.8m).

Mrs Drumm will pay $1.14m (€0.86m) of this towards the settlement with the bankruptcy trustee and will pay the balance of the settlement, $156,000 (€119,000), from other funds.

The couple also have a house in Wellesley, Boston. This is on sale for $2.195m (€1.67m), but has an outstanding mortgage of $1.2m (€913,000).

Mrs Drumm will be entitled to half the profits from the sale, with the remainder going to her husband's creditors.

The couple's house in Malahide, Co Dublin, is also on the market for €1.65m and has a €210,000 mortgage which has yet to be satisfied. Mrs Drumm will also get half of the proceeds from this sale.

Her husband's bankruptcy trial will take place in Boston early next year. Anglo, now renamed the Irish Bank Resolution Corporation, is opposing his discharge as a bankrupt.

kdoyle@herald.ie


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