Belfast Telegraph

US officials launch bid to seize Drumm's properties

US authorities are looking to seize the US properties owned by the wife of ex-Anglo Irish Bank chief executive David Drumm, with bankruptcy officials claiming they were acquired fraudulently.

Among the properties authorities are trying to seize is the Drumm's US home located at Wellesley, Massachusetts.

The trustee to Drumm's estate, Kathleen Dwyer, last night applied to reverse what she called "fraudulent transfers" between Drumm and his wife Lorraine. She is also seeking permission to sell the properties, with the proceeds going to Anglo Irish Bank, which is owned by Irish taxpayers.

Drumm transferred cash and gave stakes in US properties to his wife Lorraine during the financial crisis, the authorities claim.

Drumm, for example, has said that a property at Wellesley was bought by money belonging to Mrs Drumm, but the trustee claims said the suggestion this money was not Mr Drumm's was "patently false".

Drumm is accused of orchestrating a series of transfers to dilute and hide his interests in the real estate.

"All of the funds used to acquire the Wellesley property were derived solely from the debtor (Mr Drumm),'' states the complaint.

"Mrs Drumm acquired her interest in the property with funds transferred to her by the debtor''.

The trustee is now seeking to dismantle a trust used by the Drumms in the US, calling it a sham.

Mr Drumm is also accused of not telling the truth about his main private residence in the US. The trustee claims Drumm said his principal private residence was at Stage Neck Road, in Massachusetts, but instead he lived at another nearby address.

The complaint, filed late last night, says Mr Drumm for years controlled the finances of the couple and Mrs Drumm had ceased any employment since at least 1997.

Dwyer also claims that by mid 2007 Drumm and other Anglo executives "were aware" of the decline in the Irish property market and knew the impact it would have on Anglo.

Belfast Telegraph


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