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"Russian organized crime can use its resources to corrupt institutions here in the United States. The recent case involving the Bank of New York may prove to be one such example."
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RUSSIA: MONEY LAUNDERING ISSUES
Moscow, July 3, 2002 (MT) BoNY commissioned a $250 an hour San Francisco dick, Jack Palladino, to terrorize witnesses in the Bank of new York case, sources said.
June 14, 2002 London (MT) On June 11 and 12 of this year Natasha Gurfinkel-Kagalovsky, former head of the Bank of New York’s Eastern European Division was questioned under oath in London by the plaintiffs' attorneys, pursuant to an order of the Supreme Court of New York County. This is the first time, since the BONY money laundering scandal broke in September 1999 that Ms. Kagalovsky, 48, was formally questioned in legal proceedings regarding her involvement in the alleged money laundering through BONY.
Russia adopts money laundering law
Moscow February 1, 2002 (MT) Today the long awaited law on combating money laundering has gone into effect. The bill titled "Federal Law No. 115-FZ, dated August 7, 2001, "On Combating the Legitimization (Laundering) of Crime Proceeds" was approved by Duma on July 13 last year by a more than 2 to 1 vote margin (244 deputies voting for, 107 against and one abstention.) (See Duma passes money laundering bill MT July 13, 2001) The bill is a product of the US pressure on Russia to come up with an anti-money laundering legislation that is more closely resembles Western standards. A series of financial scandals in the 1990s involving the alleged money laundering by Russians of billions of dollars through the Bank of New York implicated several leading figures.
Duma passes money laundering bill
July 13, 2001 MOSCOW (MT) Russian Duma today approved the bill intended to combat money laundering on third and final reading by a more than 2 to 1 vote margin (244 deputies voting for, 107 against and one abstention.) The bill requires banks, insurance companies and other financial institutions to report large financial transactions by the customers and provide identity of clients who purchase securities or hard currency for cash. The bill is a product of the US pressure on Russia to come up with an anti-money laundering legislation that is more closely resembles Western standards. A series of financial scandals in the 1990s involving the alleged money laundering by Russians of billions of dollars through the Bank of New York implicated several leading figures.
Bank of New York Lawyers Subpoena Reporter’s Bank Records
May 18, New York (MT) Last week BoNY lawyers served subpoenae on banks demanding account statements and credit card records of Maria Berdnikova, a reporter who covers the Bank of New York - Russian money laundering scandal for various print and broadcast media, including the MT.
Inkombank Former Management May End Up Behind Bars
05/08/2001, Moscow (MT) Inkombank's insolvency was premeditated said Rosbank president Michael Prokhorov testifying before the Russian Parliament's (Duma) Committee on Bankruptcy and Restructuring of Credit Institutions. Prokhorov heads Inkombank's creditors committee. According to Prokhorov, Inkombank's management removed from the bank's balance and secreted approximately US$ 1 billion.
The Bank of New York internal probe concludes evidence of corruption is "not credible"
New York, July 27 (MT) - Thomas Renyi , Bank of New York Co. chairman , who is fighting a federal lawsuit claiming he profited from a US$7- billion money-laundering scheme, was cleared of wrongdoing in an internal bank investigation, Bloomberg reported yesterday. But troubling questions persist regarding the bona fides of the internal inquiry conducted by by a so-called "special litigation committee" (SLC), comprised of BoNY directors under the guidance of a Washington law firm of Venable, Baetjer, Howard & Civiletti.
Witness in the Bank of New York Case Attacked
March 15, New York (MT) Young Russian female witness who traveled to New York to testify in the case of BoNY shareholders against its management ended up in the hospital shortly after return to Moscow.
Bank of New York Loses Yet Another Round In Court
NEW YORK, DECEMBER 18 (MT) – A decision and order filed on December 15 in the Supreme Court of the State of New York denied BoNY’s request to halt BoNY shareholders' investigation into alleged corruption and money laundering by BoNY’s highest management.
Judge in Bank of New York Case Concludes Charges are not Frivolous
DECEMBER 13, 2000 (MT) – Today US District Judge Denny Chin once again denied BoNY’s request to halt BoNY’s shareholders investigation into alleged corruption and money laundering by BoNY’s highest management. Judge ruled that the “substantial charges” against BoNY have been supported by “detailed factual allegations” and are “nonfrivolous.”
Judge Doubts the Bank of New York can Investigate Itself
NEW YORK, NOVEMBER 13 (MT) – Today federal judge Denny Chin denied BoNY request to stay the lawsuit brought by BoNY shareholders against its management to give BoNY’s directors time to investigate allegations of wrongdoing by BoNY’s management on their own. Noting that there is a “substantial question” whether BoNY’s newly formed “special litigation committee (SLC)”, commissioned to investigate shareholders’ allegations, is truly independent and disinterested, judge Chin wrote in his decision: “it is difficult to imagine that the SLC will reach any conclusion other than that the [shareholders’] complaint lacks merit...”
BoNY Lawyers Argue in Court that Russian Justice Ministry is not a Government Body
New York November 10, 2000 (MT) Bank of New York lawyer, Richard Klapper, submitted an affidavit in New York federal court stating that the Ministry of Justice of Russia is in reality a "bar association", not an agency of the Russian Government.
The Bank of New York Management Attacks Director of American Russian Law Institute
09/12/2000 New York (MT) -- Confronted with allegations of massive corruption and negligence of BoNY’s senior management, asserted in the lawsuit of BoNY’s shareholders against the Bank directors, BoNY’s seniors endeavored a peculiar spin -- blaming their trouble on ARLI Director, Emanuel Zeltser.
November 6, 2001 Moscow (MT) Moscow sources say that the Bank of New York and its former senior vice president, Kagalovsky, settled her lawsuit against the Bank of New York and that BoNY agreed to allow Kagalovsky to exercise millions of dollars in stock options. According to sources, she will also get an undisclosed amount from confidential offshore accounts. However there is a catch: in exchange for the generous settlement Kagalovsky has agreed to testify on BoNY’s behalf in a lawsuit brought by BoNY shareholders in New York Federal Court. By letter dated November 6, 2001, BoNY lawyer, Richard Klapper of Sullivan & Cromwell informed all lawyers involved in the federal lawsuit that “as part of an agreement entered into last week between the Bank of New York Co., Inc. (“BNY”) and Natasha Gurfinkel Kagalovsky, Ms. Kagalovsky has agreed to make herself available for deposition [in the federal lawsuit.]”
NEW YORK, APR 28, 2000 (MT) -- Ever since the publication of O'Brien's infamous article on January 17, it was apparent that the Times could no longer afford the once front page business reporter who broke the Bank of New York-Russian money laundering story.
December 16, 1999 New York (MT-WIRE) Shortly after U.S. District Judge Lewis Kaplan permitted the deposition of former Bank of New York executive, Natasha Gurfinkel-Kagalovsky, she hired an elite PI firm to track lawyers and witnesses who provided evidence in a lawsuits and criminal investigation against BoNY and Inkombank, a now-insolvent Russian bank with organized crime ties.
Inkombank chief says US officials bribed (MT-Wire) Nov. 5, 1999
New York--Nov 5--A former head of Russia's now-insolvent Inkombank told a confidante last summer that the bank routinely paid bribes to US official in Washington and used a mesh of offshore accounts to cover the tracks. The confidante, who asked to be referred to by his first name Mikhail, said US officials were not mentioned by name or agency.
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