THE COURT officer appointed to oversee the bankruptcy proceedings of former Anglo Irish Bank chief executive David Drumm last night challenged him from being discharged as a bankrupt.
In a major setback for Mr Drumm's bid to make a fresh financial start, Kathleen Dwyer, the trustee appointed by the Boston court, applied to stop him walking away from bankruptcy.
Ms Dwyer claimed in a complaint filed with a Boston court that Mr Drumm failed to disclose in statements of his financial affairs numerous transfers of property within two years of his bankruptcy filing in October 2009.
She said that Mr Drumm "knowingly and fraudulently made nuermous false oaths and accounts".
Ms Dwyer said that Mr Drumm concealed property of his estate within one year of the bankruptcy filing by transferring funds to his wife, which was used to buy the family's home in Boston suburb of Wellesley, and to provide a loan back to him.
"In materially understating the value of assets and failing to disclose numerous transfers on his schedules and statement of financial affairs, the debtor [ Mr Drumm] concealed property of the estate after the petition was filed," said Ms Dwyer in her filing.
She says that Mr Drumm transferred a total of €682,000 to bank accounts belonging his wife in four transactions between November 3rd, 2008 and December 15, 2008 - just days before he resigned as chief executive of Anglo over Sean FitzPatrick's hidden loans.
A further seven transfers totalling $669,000 were made to his wife's bank account or joint accounts belonging to the couple between June 15th, 2009 and September 28, 2009 - just weeks before he filed for bankruptcy.
Mr Drumm failed to disclose the transfer of his interest in a property in Chatham in the Massachusetts resort of Cape Cod to himself and his wife for a nominal sum in 2008, Ms Dwyer claims.
He also failed to disclose the sale of his interest in a Range Rover for €36,000 in May 2009 and in a BMW car for €20,000 in statements to the Boston court.
Mr Drumm also "patently falsely and materially understated" the value of his personal property, she said.
Anglo claimed in its complaint to the court that "Drumm remains uncooperative and far short of candid in disclosing the actual value of certain of this assets."
Anglo alleges that he had "chosen to play fast and loose" in his open dealings with creditors.
The bank argues Mr Drumm knew about Mr FitzPatrick's concealment of his loans from 2005.
Anglo said that he approved a rise in the loans to €88.5 million and a loan of €11.5 million to one of Mr FitzPatrick's childen in 2007.
