Drumm asked to transfer €1m because of marriage

Wednesday 28 May 2014 23.41
Lorraine and David Drumm
Lorraine and David Drumm

Lorraine Drumm, the wife of the former Anglo Irish Bank CEO David Drumm, has told a bankruptcy court that she asked her husband to transfer €1m to her not because of what was happening with the bank, but because of what was happening with her marriage.

Mrs Drumm was giving evidence at the court in Boston where her husband has applied to have his debts of €10.5m discharged.

His application is being challenged by the Irish Bank Resolution Corporation and by the court-appointed bankruptcy trustee who allege that Mr Drumm fraudulently transferred assets to his wife.

Mrs Drumm explained to the court today her reasons for requesting that money.

She said in September 2008 her marriage was going through a "really, really tough time".

She said the world and Anglo Irish Bank were going through "a really hard time".

She said her husband was "stressed out" and "working all the hours God sent him".

She told the court that in the previous two years she had been pretty much raising her two daughters herself  and that had taken its toll. 

She said a lot of things collided together and she wanted to assert herself because she didn't know if her marriage would survive.

She said most days it looked like her husband would "drop dead of a heart attack".

She told the court that maybe she could see a future without him and she wanted a provision for herself and her two daughters.

She said she had never had an account in her sole name in 17 years of marriage up until September 2008 but she wanted money that she could control herself.

When asked by IBRC's lawyers if she thought about Mr Drumm's creditors, she said that she didn't, but was thinking of her self and her two children and her marriage  that was "falling apart".

She told the court that her reason for transferring the money was not about what was going on in the world but rather what was going on under her own roof.

She said she was not aware that Mr Drumm owed the bank a substantial amount of money.

She told the court that she knew the bank had mandated the directors to buy stock but she never knew how much.

The court heard that in total, between cash and other assets, her husband transferred close to two million Euro to her.

When it came to buying the house in Wellesley, she said that decision was very much hers, she said she didn't want to move house any more and she wanted her daughters to have somewhere to call home.

She drew down over 800,000  dollars from her accounts for the equity deposit in the house and the rest was made up of a mortgage of $1.2ms.

She said this was her "nest egg" for her daughters and she was almost cleaning out her bank accounts to do it.

She asked her lawyer to draw up a document that would reflect that this was her money, not Mr Drumm's and that if the house was sold, she would get her money back first.

She said she bought the house in her maiden name for privacy reasons. she said she felt if her name appeared on the real estate transaction that the first thing that would happen was that the media would be on her doorstep again.

She said the house was intended to be their family home.

Giving evidence she told the court that her husband "lives away from home a lot of the time" so it was "predominantly me and my girls' house", referring to the Drumm's two teenage daughters aged 19 and 15.

When asked directly if Mr Drumm lives there, she replied "at times".

Lorraine Drumm also told the court that it was a difficult decision for her to move to the US after David Drumm resigned from Anglo Irish Bank in December 2008 but that he didn't have any prospects in Ireland at that time. 

She said he didn't have any a money so he asked her for a loan to set up a business in the US.

She stressed to the court that it was a loan of $250,000 and definitely not a gift. She said she wanted her money back.

She said there was no loan agreement and no repayment terms.

She said she hadn't got the money back yet and that it was all still owed to her.