FORMER Anglo banker David Drumm transferred over $1m in cash to his wife and deliberately undervalued furniture at his home, US bankruptcy documents have alleged.
Lawyers have informed a bankruptcy court that they have identified several cases of alleged fraud committed by the former Anglo Irish Bank chief executive.
The bankruptcy trial in Boston opens tomorrow.
The trustee appointed by the US Bankruptcy Court and the Irish Bank Resolution Corporation (formerly Anglo Irish Bank) are challenging Mr Drumm’s entitlement to bankruptcy alleging multiple frauds.
Lawyers claim that they have proof he tried to transfer or hide cash, property, cars and furniture to avoid paying off his debts.
The legal document outlines allegations relating to transfers from Mr Drumm to his wife of over $1m plus the proceeds of the sale of two cars, five property-related transfers.
It also details an alleged deliberate undervaluing of household goods and furniture.
There is also a dispute over whether what Mr Drumm claimed was a loan from his wife, was in fact his own money.
Mr Drumm will have a chance to defend himself against the allegations in person when he takes the stand.
Lawyers for Mr Drumm say any omissions were honest mistakes.
They said any transfers to his wife were designed to allow her to have money of her own at a time when their marriage was strained.
An itemised list of the “acts of fraud, misrepresentations, concealments, transfers or other predicate acts” allegedly perpetrated by Mr Drumm has been submitted to the court.
It was filed jointly by US bankruptcy trustee Kathleen Dwyer and the liquidators of IBRC, Mr Drumm’s biggest creditor and former employer.
They said that allegations, which they claim can be proved against Mr Drumm, should block him being released debt-free from bankruptcy later this year.
The list details more than a dozen cash and property transfers, totalling millions of euro, allegedly made by Mr Drumm to his wife Lorraine in the two years before he sought to be declared bankrupt in the US in 2010.
The transfers outlined in the court filing include €760,000 in cash held in bank accounts, the proceeds from the sales of homes, property and luxury cars in Ireland and the US.
The list was compiled after Judge Frank Bailey, who is overseeing the case, asked for a comprehensive rundown of the allegations against Mr Drumm before the case gets under way tomorrow.
Mr Drumm is set to argue that strain on his marriage and health around the time of the banking crisis meant he felt it correct to make sure his wife was provided for at the time the transfers happened.
He is expected to say that any errors in details he provided to the bankruptcy trustee were unintentional.