A judge in Boston has agreed to a settlement between the wife of former Anglo Irish Bank CEO David Drumm and the court.
Mr Drumm has filed for bankruptcy in the US. This is being contested by the IBRC — the successor to Anglo Irish Bank.
As part of the agreement, Lorraine Drumm will pay a settlement and will then be permitted to keep a share of the rest of the assets she owns jointly with her husband. Mrs Drumm will have to pay a sum of almost €1m to the bankruptcy trustee.
She faced losing everything after being accused of participating in “fraudulent actions” relating to assets transferred into her name by her husband. This agreement will now settle any claims against Ms Drumm that she fraudulently benefited from the transferring of such assets.
The money for the settlement is expected to come from the sale of the Drumms’ house in Cape Cod. Once this money is paid, Mrs Drumm will be entitled to her share of whatever monies are accrued by the sale of the rest of her husband’s properties.
She will receive half of the sale of the Malahide home, which is on the market for €1.65m. She may also receive $200,000 (€150,000) from the Wellesley property, which she, her husband, and two children moved out of late last year.
They are believed to be living nearby in rented accommodation.
It is unclear how much the total amount she will be entitled to will be, but it is expected to be in excess of €1m.
Mr Drumm faces a full bankruptcy trial in Boston early next year.
He is being investigated in Ireland for his involvement in a series of allegedly unlawful deals at Anglo and could face criminal action in the US depending on the outcome of the trial.
It is illegal, with a penalty of up to five years in jail, to knowingly put down false financial information on bankruptcy filings.
Mr Drumm is also facing huge legal fees as he has hired a high-priced team to defend him in what is set to be a long and complicated legal battle.
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