Belfast Telegraph

Thursday 24 July 2014

Bankruptbank boss accused of fraud

Former Anglo Irish bank chief executive David Drumm maxed out a £8,700-limit credit card through spending on furniture, entertainment, fine wines and eating out in the weeks before he filed for bankruptcy.

The splurge included spending on Amazon.com, iTunes, Dunkin Donuts, several restaurants and off licences, as well as rug and pottery stores.

All the businesses feature in his final credit statement from Chase Bank which is now accusing him of fraud.

Details of the spending by Mr Drumm, who now lives in America, emerged after the statement was included in documents filed with a court in Boston.

Among the larger purchases detailed in the credit card statement were $557 (£357) spent in a single visit to a fine wine store, $1,120 (£719) spent in a home furnishings store, and $1,299 (£834) in a mattress retailers.

Chase Bank is now suing Mr Drumm (44), claiming he committed fraud after making representations to have his credit limit extended.

The former banker filed for bankruptcy in Boston last October with debts of £8.55m.

He moved to Massachusetts in December 2008 after quitting his post at now nationalised Anglo Irish after a scandal broke over loans to directors.

Gardai are seeking to question him over alleged major irregularities at the bank during his tenure.

In court filings, Chase said Mr Drumm racked up 'consumer debt' when he knew he would not be able to pay the money back.

Chase said Mr Drumm spent $14,293 (£9,179) between July 31 and October 14 last year, the day he filed for bankruptcy.

Mr Drumm even charged a $3.80 bill at Dunkin Donuts and visit to Starbucks costing $5.30 to the card.

Chase is one of three US credit card companies owed money by Mr Drumm. He also owes Capital One Bank $14,688 and Discover Bank $2,821. Both sums were for credit card accounts opened just nine weeks before Mr Drumm filed for bankruptcy.

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