BoNY sued by Russia's customs service

Russia's customs service is suing the Bank of New York for $22 billion over alleged misdeeds dating from the 1990s, according to Russian news agencies.
MAY 17, 2007
By  Bloomberg
Russia's customs service is suing the Bank of New York for $22 billion over alleged misdeeds dating from the 1990s, according to Russian news agencies. "In 1996-99, the bank organized an illegal scheme to launder the money received for Russian exported goods, which caused damages of $22.5 billion to the state," the news agency quoted Maxim Smal, a lawyer for the customs service, as saying. Investigations into the Bank of New York case began in the early 2000s when authorities in some countries suspected bank employees of involvement in tax evasion and money laundering schemes, according to the report. The suit apparently stems from an international scheme that U.S. authorities said involved $7 billion in illicit transfers from Russia in the late 1990s. The case resulted in a Bank of New York executive and her husband pleading guilty in 2000 to money laundering. The couple admitted to helping Russian bankers launder billions through accounts at the bank in order to avoid Russian taxes and to cover up the money's connection to crimes-including money used as ransom for a kidnapping in Russia.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave