Ex-Anglo boss Drumm gave money to wife as bank fell

CATHY HAYES,

IrishCentral.com Staff Writer

Published Friday, January 7, 2011, 4:51 AM

Updated Friday, January 7, 2011, 5:01 AM

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David Drumm

Former Anglo Irish Bank chief executive David Drumm transferred hundreds of thousands to his wife’s bank account when the cracks began to show in the bank.

This new information was revealed at Mr Drumm’s bankruptcy hearing in Boston. He told the court that he transferred these large amounts of cash in 2008. This money later allowed him to start his debt restructuring business in the United States. He said that he now owes his wife $210,000. She is one of the largest creditors featured in his bankruptcy documents.

Mr Drumm admitted that his wife Lorraine has no other income, excluding the money which he gives her. According to his bankruptcy papers his wife loaned him $260,000 to start his U.S. business but he has since paid her back $50,000.

The information came to light as he was being interviewed by Kathleen Dwyer, the trustee appointed to oversee the bankruptcy proceedings and establish how much money Mr Drumm has to pay to creditors.

Anglo Irish Bank lawyers are set to question Mr Drumm later this month. They will attempt to find out exactly what Mr Drumm did with all of his earning up to the end of 2008. They may also look at Lorraine’s income and how he obtained an E2 investor visa which allowed him to set up his U.S. business.

In October 2010 Mr Drumm filed for bankruptcy listing debts of more than $14 million and assets of $13.9 million. This includes wages and bonuses he claims are still owed to him by Anglo Irish Bank.

His house in Cape Cod, Massachusetts and Malahide, North County Dublin will be sold to pay off creditors.