Drumm's Cape Cod Mansion To Be Sold For $4 Million

The luxury home owned by disgraced former Anglo Irish Bank chief executive David Drumm in one of the most exclusive parts of Cape Cod, Massachusetts is to be sold for $4m.

The bankruptcy official in charge of Drumm's estate, Kathleen Dwyer, filed a new complaint with the court in Boston last week, in which she said she also intends to sell Mr Drumm's home in the Boston suburb of Wellesley, and his former home in Malahide in Dublin.

The bankruptcy court will meet convene next month to decide whether or not any of the proceeds of the sale should go to Mr Drumm.

Mr Drumm has listed the mansion at Stage Neck Road in Cape Cod, which he bought for $4.2m, as his primary residence.

Under American bankruptcy laws, he would be entitled to keep up to $500,000 from the sale.

But Anglo Irish Bank and Ms Dwyer say he should get nothing because he has not co-operated or told the truth throughout his case, has hidden assets and is not entitled to the protection of the court.

Lorraine Drumm, his wife, is entitled to half of the net proceeds of the sale of the house.

David Drumm resigned as chief executive of Anglo Irish Bank in 2008 amid scandals about the bank's lending and accounting practices.

He filed for bankruptcy here in the US last October, which has stalled legal action against him in Ireland.

Mr Drumm has refused to return to Ireland to co-operate with investigations into practices at Anglo.

In the fresh documents filed with the courts last week, the bankruptcy trustee claims that Drumm transferred money and other assets into his wife's name to put them beyond the reach of his creditors when problems at Anglo began to emerge in Ireland.

Mr Drumm owes his creditors in excess of $14m.

The bank he used to run - the now nationalized Anglo Irish Bank - is one of the biggest creditors, which means a large chunk of that money is owed to the Irish taxpayer.

The trustee claims that starting in the autumn of 2007 and throughout the following two years, Drumm orchestrated a series of transfers of funds to his wife.

Until September 2008, Mrs Dunne had not held bank accounts in her sole name for a least a decade.

But from that date, she opened 15 accounts at eight banks.

Sums of €832,000 and €869,000 were transferred in 13 transactions between March 2008 and September 2009 from Mr Drumm to joint accounts or Mrs Drumm's sole accounts.

In addition, the trustee claims that Mr Drumm used a "sham trust" to buy their home in Wellesley Boston.

The house was bought in January 2010 for $2m.

$830,000 of that was in cash from Mrs Drumm, and the couple entered into a property agreement that said Mr Drumm had "no past, present or future right or interest in said money" and that the house "belonged to and was exclusively owned by" Mrs Dunne.

Ms Dwyer, the bankruptcy trustee, said that it was blatantly false to claim Mr Drumm had no interest in the funds, and it was all an attempt to hide Mr Drumm's interest in the property.

Mrs Drumm would be entitled to half the proceeds from the sale of the Wellesley home, but Ms Dwyer is objecting to any money being paid to her arguing that she would be "unjustly enriched".

The documents filed contained a further startling revelation that could affect David Drumm's visa status in the United States.

Mr Drumm secured his E2 investment visa in 2009 on the basis he was setting up a business consultancy company, with the help of a large working capital loan from his wife Lorraine.

However, the trustee claims that the "fictitious loan" of $210,000 was "a sham transaction" purely to strengthen his visa application, and that the money had originated from Mr Drumm's own funds.

The trustee also queries the legitimacy of the company he set up, Delta Corporate Finance, which has only one client and never made a profit.

Mr Drumm now faces a likely investigation into his visa, and if any wrongdoing is found he could find his visa revoked when it comes up for renewal in November.