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"Grossly reprehensible behaviour": Drumm jailed for 6 years over €7.2bn bank fraud

Date
2018-06-20
Stage
Sentence
Primary locality
Dublin
County
Dublin

Summary

Former Anglo Irish Bank CEO David Drumm was sentenced to six years in prison at Dublin Circuit Criminal Court for conspiracy to defraud and false accounting. Judge Karen O'Connor described the conduct as "grossly reprehensible" and part of a "premeditated and planned" scheme. Drumm, who pleaded not guilty, was convicted by a jury of conspiring with former officials Denis Casey, William McAteer, John Bowe, and others to dishonestly inflate Anglo's 2008 deposits by €7.2 billion. He was also found guilty of false accounting for misleading the market on December 3, 2008. The judge noted that while the bank was in difficult circumstances, this did not excuse the fraud. Drumm received credit for five months previously served in a US federal penitentiary. He had been on bail throughout the trial, and his bail was continued following the conviction. The judge acknowledged the personal impact on Drumm and his family but emphasized the abuse of trust and significant planning involved in the alleged fraud.

Who, what, where, when and why

What: Report matter: "Grossly reprehensible behaviour": Drumm jailed for 6 years over €7.2bn bank fraud. 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:

Why: 2bn in fraudulent circular transactions in order to bolster the customer deposits figure on Anglo's balance sheet. CNI source report

Case subjects

Ceo David Drumm

Convicted Person

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

Outcome: CEO David Drumm has been jailed for six years for his role in a "premeditated and planned" multi-billion euro bank fraud scheme in 2008. Drumm, dressed in a navy suit and open collared blue shirt leaned back slightly in the dock as sentence was passed, but showed no visible reaction.

Places mentioned

Court Venue
  • Dublin
  • Dublin Circuit Criminal Court

Topics

Fraud Stage Sentence

Related court reports

Read the original CNI report

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