Courts / Dublin / Report

Anglo statement to ISE told of €1.9bn increase in customer funding

Date
2018-04-09
Stage
Trial
Primary locality
Dublin
County
Dublin

Summary

In a criminal hearing at Dublin Circuit Court, former Anglo Irish Bank CEO David Drumm was accused of conspiring to defraud depositors and investors by misrepresenting the bank's deposit levels. Drumm, who signed a statement to the Irish Stock Exchange on 3 December 2008, claimed that customer funding had risen to €51.5 bn, a figure that was later alleged to be inflated by €7.2 bn. He admitted that multi‑million‑euro transactions occurred between Anglo and Irish Life & Permanent (ILP) in 2008 but denied any fraud or dishonesty. Dermot Kieran, a former finance manager, testified that he learned of the transactions after they happened and that Drumm had asked him to sketch the balance sheet and forecast it for September 2008. Michael Casey, ILP's treasury manager, confirmed that a £978 m sterling transaction with Anglo on 25 September 2008 was authorised by temporarily overriding the credit limit. David Drumm pleaded not guilty.

Who, what, where, when and why

What: Report matter: Anglo statement to ISE told of €1.9bn increase in customer funding. Charges or matters: conspiring with former bank officials Denis Casey, William McAteer, John Bowe and others to defraud depositors and investors at Anglo by "dishonestly" creating the impression that deposits were €7.2 billion larger than they were in 2008; false accounting on December 3, 2008, by furnishing information to the market that Anglo's 2008 deposits were €7.2 billion larger than they were. Procedural stage: trial

When:

Case subjects

David Drumm

Defendant

Charges: conspiring with former bank officials Denis Casey, William McAteer, John Bowe and others to defraud depositors and investors at Anglo by "dishonestly" creating the impression that deposits were €7.2 billion larger than they were in 2008; false accounting on December 3, 2008, by furnishing information to the market that Anglo's 2008 deposits were €7.2 billion larger than they were (Alleged Or Contested)

Plea: Not guilty

Places mentioned

Court Venue
  • Dublin
  • Dublin Circuit Criminal Court

Topics

Fraud Stage Trial

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