Drumm facing second day of bankruptcy hearing
Former Anglo Irish Bank chief executive David Drumm is set to answer further questions this morning on the second day of bankruptcy trial in the US.
Lawyer for IBRC and the court appointed bankruptcy trustee say they can prove he fraudulently transferred funds to avoid paying his creditors so should not be released from his debt.
During six hours of questioning yesterday, the Anglo Irish bank chief executive told lawyers for his main creditor, the IBRC, that when he filed for bankruptcy in 2010 with debts of more than €10m - he filled out his paper work as “best I could”.
John Hutchinson accused Mr Drumm of making “staggering omissions” and engaging in “classic fraudulent transfers” to his wife.
In total, Mr Drumm signed over more than a $1m to his wife, during what he described as a “difficult time”.
The 47-year-old also conceded that he lied on his 2010 mortgage application to buy his home in Boston when he failed to admit that he was the subject of two legal actions in Ireland.
It the defence's case that anything omitted by Mr Drumm was an honest mistake - something the IBRC say could not have been done in good faith given Mr Drumm’s training and experience.
Lawyers for the former Anglo boss also say that transfers being questioned by the IBRC fall outside the one-year time limit in which any fraud claims can be made against him.
David Mac for Mr Drumm says that during the “period that counts” Mr Drumm only made transfers that benefited the creditors.
He is expected to make that point later today when he takes over questioning of the witness after IBRC wrap up this morning.
