Drumm ‘hid US assets’ while urging Anglo to seek funds

Picture: Photocall
Picture: Photocall

David Drumm cemented efforts to hide a multimillion-dollar American investment property from Anglo Irish Bank within hours of his explosive comments caught on tape urging other executives to “get the money in”.

Legal declarations at the registry of deeds in Cape Cod seen by the Irish Examiner show he privately moved to transfer the $2.6m (€2m) asset before and after he laid out his strategy for duping the State and exploiting its guarantee.

On Oct 2, 2008, he made a boorish, post-bank guarantee phonecall telling officials to target overseas deposits. German chancellor Angela Merkel has said the call was contemptible.

Less than 24 hours later, Mr Drumm attended a solicitors’ office on Pembroke Rd, Dublin, and signed papers to move a mortgage for the investment property into his wife’s name.

Fifteen days earlier he took the first step towards shifting this property beyond his bank’s reach, despite owing Anglo more than €8m.

At this meeting with his solicitor, Mr Drumm signed deeds to cancel a claim his former investment partner had over the site on 173 Cross St, Cape Cod.

Two days after that, Mr Drumm and a delegation from Anglo met with the financial regulator, Patrick Neary, for the first of three crisis meetings in which it tried to pressure the State to rescue the bank.

On the day of the last meeting (Sept 24, 2008), Mr Drumm transferred €150,000 from his own account into that of his wife Lorraine. During that time, she opened the first of 15 personal bank accounts having not had one in her own name for 10 years.

By the time he declared for bankruptcy, Mr Drumm had moved almost €2m to his wife’s accounts.

These were separate to property transfers revolving around the couple’s home in Dublin, their US home, and a nearby investment property at Cross St.

A number of legal papers were signed regarding the Cross St property in the two meetings with his solicitor, on Sept 16 and Oct 3, 2008. The end result was to cancel a mortgage due to his investment partner, Michael Barnett; confirm a new $1.3m mortgage had been taken out with a Cape Cod bank; transfer this mortgage into his wife’s name; and rent the property to himself and his wife for $100.

The property sold a year later for $2.6m and, due to these transfers, his wife was entitled to half the profit. Anglo later filed an affidavit with a Boston court to try to block his bankruptcy application. In this, it accused Mr Drumm of shifting the Cross St property, and others, into his wife’s name as part of a deliberate strategy to defraud the bank.

He has denied the bank’s allegations and a trial is due to take place next year.

© Irish Examiner Ltd. All rights reserved

Irish Examiner live news app for smartphones lets you quickly access breaking news, sport, business, entertainment and weather. appstoregoogle play
Irish Examiner ePaper app gives you the entire newspaper delivered to your phone or tablet for as little as 55c a day. epaper
Home

More From The Irish Examiner