David Drumm may face criminal charges in US

Judge’s finding in bankruptcy trial could be basis for prosecution

Former Anglo Irish Bank chief executive David Drumm: The Massachusetts bankruptcy judge found his sworn statements to the court had been replete with “outright lies”.

Former Anglo Irish Bank chief executive David Drumm: The Massachusetts bankruptcy judge found his sworn statements to the court had been replete with “outright lies”.

 

The highly critical judgment in the bankruptcy trial of former Anglo Irish Bank chief executive David Drumm has been passed to the office of the US Trustee, which can refer the judge’s findings to the department of justice and recommend criminal charges on perjury and fraud.

Massachusetts bankruptcy judge Frank Bailey found in his ruling that Mr Drumm (48) had been “fraudulent” and that his sworn statements to the court had been replete with “outright lies.”

The former banker lost his four-year-old legal bid to be declared bankrupt and to have more than €10 million in debts written off, leaving him exposed to legal action from creditors for full repayment.

Bankruptcy cases

The trustee’s office can forward the judgment to the US Department of Justice and recommend that criminal charges relating to perjury and fraud should be brought if it believes there are grounds for such action.

Declined to comment

The judge’s ruling included stinging criticisms of Mr Drumm’s character and conduct during the bankruptcy proceedings and trial.

“Finding Drumm not remotely credible and his conduct both knowing and fraudulent, I conclude that the plaintiffs have established cause to deny him a discharge many times over,” the judge concluded.

“Drumm’s statements to this court were replete with knowingly false statements, failures to disclose, efforts to misdirect, and outright lies.”

The former banker has 14 days from the issuing of the judgment to lodge an appeal.