Courts / Dublin / Report

Drumm tried to resolve problem "created entirely" by Sean Quinn, defence say

Date
2018-07-09

Stage
Sentence

Primary locality
Dublin

County
Dublin

Summary

David Drumm, former CEO of Anglo Irish Bank, pleaded guilty to ten counts of authorising unlawful financial assistance for the purchase of bank shares by the Maple Ten group between 10 and 17 July 2008. The loans were part of a scheme to unwind a 28 % stake that businessman Sean Quinn had built in the bank using contracts for difference (CFDs). Drumm's defence argued that he was trying to resolve a problem entirely created by Quinn, who had used CFDs to speculate on Anglo shares and whose position threatened the bank's stability. Drumm, aged 51, was transferred from Mountjoy Prison, where he is serving a six‑year term for a separate €7.2 bn fraudulent loan scheme, to the Dublin Circuit Criminal Court for sentencing. The court heard that Drumm had attempted to persuade Quinn to reduce his CFD position and, after other options failed, proposed that ten high‑net‑worth individuals purchase a portion of the Quinn shareholding. David Drumm was convicted.

Who, what, where, when and why

What: Report matter: Drumm tried to resolve problem "created entirely" by Sean Quinn, defence say. Charges or matters: conspiring to carry out a €7.2bn fraudulent loan scheme. Procedural stage: sentence. Findings: Convicted

When:

July 2008 Hearing Or Sentence
17 July Hearing Or Sentence
May 2007 Other
September 2007 Hearing Or Sentence
November 2007 Other
July 17 Hearing Or Sentence
December 2005 Other
2018-07-09 Publication

Why: The court heard Mr Quinn was asked to do this in early 2008 but was reluctant to, because doing so would crystalise the losses he had incurred building up the CFD position. Court evidence reported by CNI

Case subjects

David Drumm

Convicted Person

Charges: conspiring to carry out a €7.2bn fraudulent loan scheme (Proven)

Plea: Guilty

Finding: Convicted

Outcome: Convicted; Drumm (51) of Skerries, Co Dublin is to be sentenced at 2pm tomorrow at Dublin Circuit Criminal Court for his role in the illegal scheme, of which gardaí say he was at the helm. Drumm was jailed last month after a jury returned unanimous verdicts of guilty on a charge of conspiracy to defraud and false accounting, following an 87-day trial.; After hearing evidence of the offending and a plea of mitigation, Judge Karen O'Connor adjourned the case to tomorrow for sentencing.