FORMER Anglo Irish Bank boss David Drumm failed to include some details of $1.2m transferred to his wife Lorraine before he sought bankruptcy because he “forgot”, a US court has heard.
Mr Drumm’s entitlement to being discharged from bankruptcy is being challenged by IBRC and the court-appointed trustee.
The non-jury case is to decide whether Mr Drumm can emerge debt free after filing for bankruptcy in the US in 2010 after he moved there with his family.
If that is blocked, he remains on the hook for his debts.
Appearing in a Boston court yesterday as the case resumed he conceded that he lied on a US mortgage application - used to buy a $2m home in the upmarket suburb of Wellesley.
He signed the papers without declaring that he was being sued at the time, something explicitly asked in the forms.
Mr Drumm also “forgot” to include a €6,000 loan made to his brother days before he signed official papers in the US in December 2010, declaring he had not made loans to family members. He denied trying to conceal the loan. The court was told that he earned $18m between 2004 and 2008.
Mr Drumm faced a barrage of detailed questions from lawyer John Hutchinson representing his former employer, now called IBRC.
He argued that only “fraud or recklessness” could explain mistakes and omissions in papers filed by him as part of his US bankruptcy.
Mr Drumm was probed about $1.2m cash transferred from accounts in either his name or held jointly with his wife to accounts in her sole name from September 2008 onward.
Lawyers for Mr Drumm told the court that under US rules only transfers made in the year before he sought bankruptcy should be under the spotlight.