Drumm bankruptcy proceedings to begin in US

Former Anglo Irish Bank chief executive David Drumm

The bankruptcy hearing of former Anglo Irish Bank chief executive David Drumm begins in the United States this morning.

Three and a half years after filing for bankruptcy in the US with debts of more than €10m, Mr Drumm will take to the stand in the US bankruptcy court in Boston this morning to answer questions about his finances.

Court-appointed trustee and lawyers for Irish Bank Resolution Corporation (formerly Anglo) are challenging his discharge from debt, alleging he deliberately tried to shelter money from his creditors.

They claim they can prove the 47-year-old transferred hundreds of thousands of euro and property to his wife Lorraine in a bid to avoid paying creditors.

They are questioning the motives behind a series of transfers to his wife’s accounts, including one of a €250,000 just four days before he resigned as the chief executive of Anglo.

He claims he made the transactions to ensure his wife was secure at a time when their marriage was under great financial strain.

Mr Drumm is also accused of lying under oath, but his legal team says any omissions in bankruptcy filings were “honest mistakes”.

He will get a chance to defend himself and explain his financial history this morning when he is called as the first witness in the five-day hearing.

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