David Drumm blames advisors for bankruptcy refusal

Embattled former Anglo Irish Bank chief executive David Drumm has launched an appeal against a US court’s decision to deny him bankruptcy protection.

Mr Drumm, who owes creditors over €10m, says mistakes allegedly made by his advisors and representatives are behind the US bankruptcy court’s decision to refuse to discharge his debts, the majority of which are owed to the Irish Banking Resolution Corporation (IBRC) — formerly Anglo Irish Bank.

Earlier this year, the Boston court found IBRC had “established cause to deny [Mr Drumm] discharge many times over” with Judge Frank Bailey adding that Mr Drumm lied to the court and was deliberately evasive.

In a 57-page submission filed to the Massachusetts District Court on Wednesday, Mr Drumm disputed the finding that he deliberately attempted to put assets beyond the reach of the court and claimed that the court’s decision to refuse him bankruptcy was “erroneous”.

The former Anglo chief claimed that he fully disclosed all facts regarding his financial position to his attorneys and forensic accountants.

“It is also undisputed that Mr Drumm always intended to make full disclosure and, through counsel, did make full disclosure of all required information by February 2011, less than four months after he filed for bankruptcy,” the submission read.

“This is not a case where the debtor hid assets or transactions and then disclosed them only when he was caught, but rather a case where the debtor consistently made disclosures voluntarily to the trustee in the manner suggested and approved by his counsel.”

Mr Drumm’s submission added that his legal team’s testimony at his bankruptcy hearing acknowledged responsibility for the failure to disclose assets in a statement of financial affairs filed on his behalf.

He further claimed that the court wrongfully penalised him for not calling his accountants to testify, as they were equally available to both parties.

He also disputed the court’s finding that he retained an interest in funds transferred to his wife, saying his lack of control was evident and in contrast to his wife’s dominion and control over the money.

Mr Drumm does not dispute that he made five cash transfers from accounts either in his name or held jointly with his wife to a separate account solely in his wife’s name between November 2008 and June 2009.

All of the transfers, it was alleged in the Boston court, were made to put some $500,000, including a single $372,561 transfer on December 15, beyond the reach of bankruptcy.