Drumm loses bid to escape debts in US
A BID by former Anglo Irish Bank boss David Drumm to escape his debts has failed in the US court.
Mr Drumm, who has been living in the US with his family since quitting the failed bank three years ago, owes creditors more than €10.2m. He filed for bankruptcy in 2010 and yesterday his lawyers tried to have a case blocking his bankruptcy thrown out on a technicality.
A Boston judge ruled, however, that the case could proceed and a full trial is now likely to take place in the summer.
Kathleen Dwyer, the court official overseeing Mr Drumm’s case, is refusing to allow him be discharged as a bankrupt.
She filed a lawsuit against him to prevent it and accused him of being deceitful and fraudulently failing to disclose details of cash and assets.
Mr Drumm’s legal team argued that Ms Dwyer had missed a deadline to file documents by 51 minutes and the case should be thrown out. The lawyers said since Ms Dwyer did not have her objection submitted to the clerk of the courts by 4.30pm, when the building closed, the case against their client should be dismissed.
They said deadlines were important to keep debtors from being prejudiced against and from being blindsided.
Judge Frank Bailey rejected this argument, saying Ms Dwyer “could reasonably have believed she had more time”. Neither Mr Drumm nor Ms Dwyer attended yesterday's hearing.
Anglo, now know as the Irish Bank Resolution Corporation (IBRC), has launched a similar lawsuit to the one lodged by Ms Dwyer in which it claims that Mr Drumm transferred large sums of money to his wife Lorraine.
The allegation has been denied by Mr and Mrs Drumm. Gardai are still looking for Mr Drumm’s assistance in their inquiries into huge irregularities during his term of office at the bank, but Mr Drumm has refused to return to Ireland for questioning.