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| No 20 Abington, Malahide, Co. Dublin.
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Anglo Irish Bank begins legal proceedings for recovery of €8 million against former chief executive David Drumm
State-owned Anglo Irish Bank has begun legal proceedings against former chief executive David Drumm to recover unpaid loans of €8 million and overturn the transfer of his Malahide, Dublin home into his wife’s name.
The Irish Times says that Land Registry records show No 20 Abington was transferred from the couple’s names on May 13th, 2009, into the sole name of Lorraine Drumm as “full owner” c/o the Dublin offices of solicitor Noel Smyth. The house was first registered in both names in 2003.
Drumm resigned as chief executive of Anglo last December after it emerged that the bank had concealed loans of up to €122 million to its former chairman Seán FitzPatrick over eight years.
The bank holds now worthless shares as security for most of the loans and is seeking to pursue assets such as the house.
The Minister for Finance Brian Lenihan has said that current and former Anglo executives not repaying loans would be “sued in the courts”.
Drumm and his family are currently living in the United States, where he is establishing a financial advisory company.
The 6-bedroom 5,400 sq ft Malahide house has been withdrawn from the market despite a cut in the asking price from €2.79 million to €2.3 million in September.
The Irish Independent reported in 1999 that "Ireland's first £1 million new home in on the way with an exclusive development of 50 very upmarket new homes planned for Malahide in north Co Dublin, which will appeal to the cash-rich luxury homebuyers long starved of top quality, large new homes.
To be priced from under £1 million to close to £1.5 million for the largest houses, the homes will be located in a prestigious scheme with classic exterior styles of the Georgian and Victorian eras. The 41-acre site is situated in one of the highly desirable residential neighbourhoods of the capital."
Former Boyzone frontman Ronan Keating and Westlife’s Nicky Byrne and Georgina Ahern are reported to be residents in the gated estate where several houses are currently for sale.
David Drumm has an annual pension entitlement of €271,000 and can expect to retire on a pension of up to €6.7 million, Ian Mitchell, managing director of Deloitte Pensions & Investments has told the Sunday Independent. This is on top of the €3.4 million in cash allowances Drumm received when he left the bank in return for waiving over-the-cap pension entitlements that built up after the Government capped the pension of any individual at €5 million in 2006.
He is due a bonus payment in respect of 2006.
Drumm has a 4,800 sq ft house at Stage Neck Road, Chatham, Cape Cod, Massachusetts, overlooking Nantucket Sound.
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| David Drumm's view of the Oyster River from Stage Neck Road, Chatham, Cape Cod, Massachusetts.
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The house was purchased in March 2008 for $4.6 million with the assistance of two separate mortgages for $1 million apiece, according to filings with the Massachusetts land registry.
The Irish Independent reported last September that Drumm had reached an agreement to sell another Massachusetts house for around $2.5 million. He had purchased it in September 2008, when Anglo was engulfed in a crisis,
David Drumm is a chartered accountant, who joined Anglo in 1993 after a number of years in corporate finance. He was appointed Group Chief Executive in January 2005 having been Head of Lending Ireland and prior to that CEO of the North America Division.
