US judge wants full list of alleged Drumm frauds

Tuesday 13 May 2014 21.47
The judge hearing former Anglo Irish Bank CEO David Drumm's bankruptcy trial in Boston has asked for a full detailed list of his alleged frauds
The judge hearing former Anglo Irish Bank CEO David Drumm's bankruptcy trial in Boston has asked for a full detailed list of his alleged frauds

The judge hearing former Anglo Irish Bank CEO David Drumm's bankruptcy trial in Boston has asked for a full detailed list of his alleged frauds.

At a pre-trial hearing today, Judge Frank Bailey said he wanted to know the "who, what, when and where" of the case against Mr Drumm.

Mr Drumm has filed for bankruptcy in Boston, but the court appointed trustee Kathleen Dwyer and the Irish Bank Resolution Corporation, formerly Anglo Irish Bank, are challenging that.

They claim that he has misled the court and has hidden assets.

Today the judge asked lawyers for the bank and the trustee to provide him with itemised details of all alleged mis-representations, concealment of assets and transfers of funds.

Judge Bailey said he wanted to know in advance what the lawyers would be able to prove.

He said it would be "enormously helpful" to him to see what statements had been made, and what was the transfer of funds and assets, and what funds and/or assets were concealed.

He said he was not trying to interfere with the bank and trustee's strategy, but that it would be helpful for him to determine what was at issue.

It was decided today that Mr Drumm will be the first witness to give evidence at the bankruptcy trial, due to begin next Wednesday.

Lawyers for the trustee, the bank and his own legal team will question him at that time, however they will be able to recall him later in the trial if required.

However lawyers will not be able to present any evidence relating to his conduct while in Ireland as CEO of Anglo Irish Bank.

The judge ruled that Mr Drumm, and the trustee Ms Dwyer will be permitted to remain in the courtroom for the five days of the trial, but that all other witnesses will be kept in a separate room until they give evidence.

The lawyers taking the case against Mr Drumm's bankruptcy say they intend to call a witness to give evidence of his past conduct of alleged fraud.

They are alleging that Shari Levitan, a Boston-based lawyer, was consulted by Mr Drumm in 2009 in relation to coming to the United States.

Mr Drumm's legal team object to this evidence, saying that her testimony is not relevant.

A number of Mr Drumm's former lawyers and accountants have waived their attorney-client privilege and are prepared to testify during the hearing if required.  

They have already given deposition evidence to the legal teams.

The bankruptcy trial is due to begin next Wednesday and is expected to last five days. 

After that all sides will have around 30 days to submit their proposed findings to the judge, who will then reserve judgement to be delivered at a later date, more than likely in late summer.