The former Chief Executive of Anglo Irish bank, David Drumm is due in court in Boston today for his bankruptcy hearing.
The former bank chief filed for bankruptcy in the U.S. on October 14th last. Mr Drumm will be facing questions from his creditors, including Anglo Irish Bank for whom he owes $11.5 million (€8.5 million).
During the court hearing Mr Drumm's creditors will have the opportunity to question him about his finances. Anglo Irish Bank will be quizzing Mr Drumm about how he came to the United States and how he acquired a visa to do so.
Mr Drumm has an E-2visa, this non-immigrant visa grants temporary residency to people traveling to the U.S. for the purpose of developing and managing businesses. Visa applicants must have invested or plan to invest substantial capital in the business.
It is thought Anglo Irish will be questioning exactly what Mr Drumm has been doing in terms of his business Delta Corporate Finance. Has he been employing people and complying with the terms of his visa and most importantly has he been generating a profit from the business.
When an Irish reporter went to the companies listed address recently, no person in the building had heard of Delta Corporate Finance or David Drumm.
Mr Drumm will have to detail to the court his assets and he will be asked to give a full statement of accounts over the past decade
Anglo Irish bank claims that Mr Drumm is taking advantage of the U.S. bankruptcy process to avoid his liabilities in Ireland.
“The big question is, is Mr Drumm being honest and straight forward in his dealings with the bankruptcy court and with his creditors and if he is, then is will granted dispensation but if he's not he will face very serious consequences in terms of fines and imprisonment,” according to RTE's Richard Downes.
In court documents filed with the District of Massachusetts, Mr Drumm listed his assets at $13.9 million and his liabilities at $14.2 million.
His AIB credit card debt, comes to just over $26,000.
His personal assets include his property in Cape Cod residence valued at nearly $3 million, his Irish home in Malahide, Dublin, worth about $1.5 million and a 50 percent interest in another Dublin property, valued at $162,000. Among these assets he lists his dog which is valued at just $1.
His most valuable asset if his Anglo Irish pension, which is worth $5 million.
The extradition of the former Anglo Irish bank chief could be sought if the Director of Public Prosecutions issues proceedings against him after an inquiry by Irish police is completed.