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Anglo tries to stop former chief from declaring bankruptcy in the US

Meanwhile, the Minister for Finance says the government cannot raise questions about the legitimacy of Drumm’s residency in the US – as this could interfere with the work of the DPP.

Image: [File photo]

Updated at 14.15

THE FINANCE MINISTER Michael Noonan says the government cannot contact the authorities in the United States to raise questions about the legitimacy of David Drumm’s residency, as this could interfere with the work of Director of Public Prosecutions (DPP).

Noonan was speaking in response to questions posed at the Oireachtas Committee on Finance, Public Expenditure and Reform this afternoon. He said that the DPP was reviewing Drumm’s case and that neither he nor the government could interfere with the proceedings, adding: “I have no authority to write to anyone in the United States to declare an Irish citizen an illegal immigrant”.

Drumm, the former Chief Executive of Anglo Irish Bank, owes the bank in the region of ten million euro.

Now Anglo is trying to stop its former boss from using bankruptcy laws in the US to avoid repaying the debt, saying that Drumm has lied under oath and that he committed fraud when he was in charge there.

Drumm’s hearing is ongoing in the Us Bankruptcy Court in Boston.

Reuters reports that Anglo claims Drumm altered the terms of loans taken out by he and other directors of the bank to avoid any risk of personal liability.

Anglo’s complaints to the court point to concealment and fraudulent activity and say that Drumm lied under oath. It’s also reported that he concealed assets by transferring them into his wife’s name.

According to reports in the Irish Times and the Irish Independent today Drumm transferred large sums of money to his wife’s bank accounts before he resigned as chief executive of Anglo Irish Bank, and in the weeks leading up to his filing for bankruptcy.

Under American bankruptcy law, and asset a person becomes an owner of after they file for bankruptcy cannot be repossessed for the purposes of the proceedings.

In May the Fianna Fáil TD Michael McGrath said that he wanted US authorities to revoke David Drumm’s US visa in light of the investigation into proceedings at Anglo by the Gardaí and the Director of Corporate Enforcement.

It was reported in February that the bankruptcy court in Boston had heard that Drumm had up to 25 bank accounts during his time with Anglo, and that his personal finances were in a ‘chaotic state’.

Last Friday Anglo Irish Bank reported a pre-tax loss of €101 million for the first six months of the year.

About the author:

Emer McLysaght

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