Anglo Irish Bank has filed papers in a Boston court alleging misconduct and deception on the part of David Drumm when he was chief executive at the bank.
In papers signed by the current chief executive, Anglo Irish Bank said Mr Drumm created loans documentation three months after they had been issued and knew of the activities of the bank's chairman Sean FitzPatrick, but did nothing about it.
The bank contends that this amounted to a breach of his duties.
These are new revelations filed by Anglo Irish Bank to back up its claims for the return of money loaned to David Drumm.
The bank says that Mr Drumm knew for at least two years that Sean FitzPatrick - Anglo's chairman at the time - had been shifting over €100m off the books at Anglo Irish to Irish Nationwide Building Society. This 'warehousing' of loans is subject to a number of Garda and corporate inquiries.
The bank also says Mr Drumm engaged in deceptive actions and misconduct while serving as an officer of the bank.
It says David Drumm failed in his fiduciary duty by secretly concocting documents three months after loans were issued which made them 'non-recourse'. This meant that loans to certain borrowers were only secured on the shares of Anglo Irish Bank.
In effect these borrowers would have no liability for the loans if the shares collapsed, which is exactly what happened. The bank says David Drumm did this for himself as well.
