Anglo Irish Ex-CEO Concedes Errors in Bankruptcy Papers

Former Anglo Irish Bank Corp. Chief Executive Officer David K. Drumm, sued by the defunct lender over an unpaid personal loan, conceded to a U.S. judge he made “a lot of errors” in his bankruptcy filing and wasn’t aware he needed to reveal $1.2 million in cash transfers to his wife, Bloomberg News reported. Drumm, 47, filed for personal bankruptcy protection from creditors in 2010 in Boston, two years after he began moving money to a new account set up for his wife. Anglo Irish argues Drumm can’t use U.S. law to avoid repaying the Dublin-based bank 7.65 million euros ($10.5 million) because he lied to the court about his finances in a bid to dodge debts. “There were a staggering number of omissions and errors, weren’t there?” Anglo Irish’s attorney, John Hutchinson, asked Drumm during the second day of a trial in bankruptcy court in Boston. Drumm later amended his bankruptcy filing. He testified yesterday that he gave the bankruptcy trustee a detailed spreadsheet in 2011 showing every transfer to his wife. Drumm, a Dublin native, bought a $4.6 million home in Chatham, Massachusetts, in March 2008, about nine months before resigning as Anglo Irish’s CEO, according to court papers. Ireland nationalized the lender weeks after he stepped down, in January 2009, as loan losses soared following the worst real estate crash in Western Europe. Drumm and his family moved to the U.S. five months later. Read more.