Expert gives evidence at David Drumm fraud trial

This report is a localnews.ie summary based on public court reporting and records; sources are listed below.

David Drumm pleaded not guilty to conspiracy to defraud and false accounting. His trial was before Dublin Circuit Criminal Court. The proceedings were reported on 9 May 2018.

The conspiracy charge alleged that Drumm and former bank officials Denis Casey, William McAteer, John Bowe and others dishonestly created the impression that Anglo Irish Bank’s deposits in 2008 were €7.2 billion larger than they were, intending to defraud depositors and investors. The false accounting charge concerned information furnished to the market on 3 December 2008 stating that the deposits were €7.2 billion larger than they were.

Dan Taylor, an expert witness for the State, said transactions between Anglo and Irish Life & Permanent lacked commercial substance. He said the inclusion of €7.2 billion in Anglo’s preliminary announcement was “misleading and inaccurate” and that the announcement contained no specific disclosure relating to the transactions. Drumm accepts that the transactions took place but disputes that they were fraudulent or dishonest.

After Taylor concluded his second day of evidence, Judge Karen O’Connor told the jury on 9 May that it was for them to decide what weight to attach to it. The trial was continuing before the judge and jury.