Courts / Dublin / Report
"A massive con": Drumm guilty of €7.2 billlion conspiracy to defraud
Summary
Former Anglo Irish Bank CEO David Drumm was found guilty by a jury at Dublin Circuit Criminal Court on two charges: conspiracy to defraud and false accounting. The jury returned unanimous verdicts after 87 days of trial, the third-longest in the State's history. Drumm, who pleaded not guilty to both charges, was convicted of conspiring with former bank officials Denis Casey, William McAteer, John Bowe, and others to defraud depositors and investors by dishonestly creating the impression that 2008 deposits were €7.2 billion larger than they were. He was also found guilty of false accounting on December 3, 2008, for furnishing misleading information to the market regarding the bank's deposit figures. The prosecution alleged the scheme involved fraudulent circular transactions between Anglo and Irish Life & Permanent to artificially inflate customer deposits from €44 billion to €51 billion. Although Drumm was on bail throughout the trial, Detective Sergeant Michael McKenna opposed its continuation, citing flight risk and the substantial prison terms received by his co-conspirators. Defense counsel Brendan Grehan SC requested bail on humanitarian grounds, noting Drumm's family was in the US. Judge Karen O'Connor granted bail, requiring Drumm to sign daily at Balbriggan Garda Station. The matter is now at the sentencing stage, with the maximum penalty for conspiracy to defraud being unlimited and ten years for false accounting.
Who, what, where, when and why
What: Report matter: "A massive con": Drumm guilty of €7.2 billlion conspiracy to defraud. 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 in 2008 were €7.2 billion larger than they were; 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: sentence
When:
- December 3 2008 Other
- June 2016 Hearing Or Sentence
- March 2016 Hearing Or Sentence
- December 3, 2008 Other
- 2018-06-06 Publication
Why: 2bn in fraudulent circular transactions in order to bolster the customer deposits figure on Anglo's balance sheet. CNI source report
Case subjects
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 in 2008 were €7.2 billion larger than they were; 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
- Dublin
- Dublin Circuit Criminal Court
- on daily at Balbriggan Garda Station
- Balbriggan
Topics
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