Ex-Irish bank chief David Drumm guilty of multi-billion euro fraud
A former Anglo Irish Bank chief executive has been found guilty of fraud in the Republic.
David Drumm (51) faced allegations of conspiracy to defraud and false accounting after denying arranging dishonest or fraudulent multi-billion euro transfers to boost the failed Irish lender’s books in the months before it went bust in 2008. Bailing out Anglo was to cost Irish taxpayers billions of euro.
The defendant had been charged with conspiring to “dishonestly” create the false and misleading impression that deposits in 2008 were €7.2bn larger than they were. He also denied knowingly presenting the false figures to the market in December 2008.
The jury returned unanimous verdicts on both counts at Dublin Circuit Criminal Court yesterday.
Drumm, of Shenick Avenue in Skerries, Co Dublin, sat quietly and did not react as the verdicts were announced.
Drumm’s defence team told the court his wife and children were not present because they were attending a graduation ceremony in Boston.
Judge Karen O’Connor released him on bail with strict conditions to sign in at a police station every day and not to apply for a new passport since his had expired. She told the court she will sentence him on June 20.
Anglo was nationalised by the then government, a move which cost Irish citizens €29bn.
Judge O’Connor previously told the court to remember these were “clearly very stressful and difficult times”.
March 17, 2008 became known as the ‘St Patrick’s Day Massacre’ as the effects of the global financial crisis began to take hold in Ireland and huge amounts were wiped off the value of stocks.
The Irish Government introduced a deposit guarantee scheme that year, then underwrote the entire banking system, the court heard.
Described as the man who “called the shots” at the bank, Drumm was Anglo chief executive from 2005 until 2008 when he resigned.
He left Ireland for Boston in 2009 but was brought back to the Republic in March 2016 under an extradition warrant.