Timeline of David Drumm’s US bankruptcy A story of hidden assets, secret transfers and false oaths

From banking crisis to bankruptcy to trial

The former Cape Cod home of David Drumm, former CEO of Anglo Irish Bank. Photograph: Cape Cod Times

The former Cape Cod home of David Drumm, former CEO of Anglo Irish Bank. Photograph: Cape Cod Times

Fri, May 16, 2014, 01:20

2008

September 19th
For the first time since marrying David Drumm in 1991, Lorraine Drumm opens a bank account in her own name. The account is opened in Anglo Irish Bank where Drumm is chief executive.


September 20th
As the Irish banking crisis deepens, minister for finance Brian Lenihan, to stem a bank run, increases the amount of customer money protected by the State’s deposit guarantee from €20,000 to €100,000.


September 22nd
At Anglo, David Drumm unsuccessfully attempts to broker a merger with Irish Life & Permanent to strengthen the bank as the crisis deteriorates. Internal documents showing loans to directors, including loans of €8.5 million to Drumm, are formally signed in preparation for the bank’s accounts.


September 24th
Drumm transfers €150,000 from an account at Anglo to his wife’s new account. At Anglo around this time, the bank is losing between €500 million and €1 billion in deposits every day in the crisis.


September 30th
The Government introduces the bank guarantee to try to protect all the domestic Irish financial institutions but in the first instance to stop the run on Anglo Irish Bank. Drumm obtains 100 per cent interest in a house at 173 Cross Street in the Cape Cod resort of Chatham, north of Boston.


October 20th
David Drumm transfers 50 per cent of his interest in the Cross Street property to Lorraine.


On or around November 3rd
A transfer of €80,000 is made from the couple’s joint account at AIB to Lorraine’s AIB fixed -term account. A transfer of €50,000 is made from Drumm’s account at Anglo to her account at the bank.


December 3rd
Anglo’s share price plummets 29 per cent to its lowest level in 11 years after setting aside more money to cover increasing losses on property loans when it published its yearly accounts to September 2008.


December 12th
Anglo tells the government that it cannot survive on its own and needs help to raise capital. That same day Lorraine Drumm opens another bank account in her sole name at AIB.

December
The Drumms are granted a €250,000 mortgage from KBC Homeloans on a residential property that they jointly own on The Way at Skerries Rock in north Co Dublin.


On or around December 12th
A transfer of €180,000 is made from the couple’s joint bank account at AIB to Lorraine’s new AIB account.


On or around December 15th
A transfer of €372,561 is made from the couple’s joint account at AIB to Lorraine’s new AIB account.
December 18th
Sean FitzPatrick resigns as chairman of Anglo after admitting that he hid €87 million in loans from shareholders by shifting them between Anglo Irish Bank and Irish Nationwide Building Society.


December 19th
David Drumm resigns as chief executive of the bank over the same controversy.


2009

January 14th
Anglo Irish Bank is nationalised.


February 2nd
Lorraine Drumm withdraws $250,000 (€198,208) from her AIB account and wires the money to an account in a Cape Cod Five Cents Savings Bank owned by David Drumm’s new US consultancy business, Harborlight Capital Partners. He later renames it Delta Corporate Finance. To qualify for an E-2 Treaty Investor Visa to live in the US, Drumm has to invest money in an American business.

On or around May 5th
Drumm sells his Range Rover SUV for €36,000. The sale proceeds are deposited in Lorraine’s bank account.


June
David Drumm, his wife and two daughters move to the United States.


On or around June 15th
A transfer of $99,991 is made from the Drumms’ joint account at a Cape Cod bank to Lorraine’s AIB US dollar account.


September
The Drumms sell the Cross Street house in Cape Cod for $2.365 million, generating net proceeds of $412,000, half of which is deposited in Lorraine’s account at the Cape Cod bank.