David Drumm has lost his bid to be declared bankrupt in the United States - with a judge saying he had told “outright lies” to a court.
In his ruling, bankruptcy judge Frank Bailey is blistering in his criticism of the testimony of the former Anglo Irish Bank CEO.
The judge said Mr Drumm’s evidence in court wasn’t “remotely credible” - and included some statements that were “knowingly false”, and others which were “outright lies”.
He also accused Mr Drumm of giving only limited information about his affairs to his own bankruptcy trustee - information which was “delayed and shaped to his purposes”.
The court ruled that Mr Drumm had knowingly filed false documents when he was attempting to transfer half of the family home in Malahide into the ownership of his wife Lorraine.
Mr Drumm had filed a declaration that he was solvent at the time - a filing the US court says was knowingly inappropriate, given that Drumm was already telling Anglo Irish Bank he was unable to repay its loans.
And because of David Drumm’s professional knowledge of financial affairs, the judge said he simply couldn’t accept his "so stupid" defence hat crucial details of his own finances had been left out by accident.
The ruling is a huge blow for the former Anglo CEO, and which opens the door for IBRC to renew its legal action back home, to chase the return of millions in unpaid loans.
That could see Mr Drumm forced to return to Ireland for the first time since moving to Massachusetts in mid-2009.
