Russian Federal Customs Service sued Bank of New York Mellon Corp. citing wire fraud against the world’s largest custody bank.
New York business litigation lawyers alert-Bank of New York Mellon may settle $7 billion Russian wire transfer suit.
New York, NY–New York business litigation lawyers with Bank of New York Mellon Corp. (BNY Mellon) are currently negotiating with their accusers, the Russian Federal Customs Service, to settle allegations involving the illegal wire transfer of $7 billion out of Russia in the 1990’s. As reported by Bloomberg, on Tuesday, September 15, 2009, the world’s largest custody bank may settle the claim for some $22.5 billion. The settlement may be reached before the next scheduled court hearing in Moscow on October 20, 2009.
The Russian Federal Customs Service demanded triple the amount in damages, $21 billion, citing the U.S. Racketeer Influenced and Corrupt Organizations Act (RICO). BNY Mellon is headquartered in New York City, New York and employs some 42,900 staff members worldwide. News reports indicate BNY Mellon officials stated they neglected to report a suspicious wire transfers in 2005 and paid $14 million to end two United States criminal investigations. A couple previously admitted to conspiracy to transfer over $7 billion out of Russia and have been sentenced to five years probation. The former Bank of New York Vice President in London, Lucy Edwards, and her spouse Peter Berlin, pled guilty. A Russian Judge informed both sides in the international suit to settle out of court in November because of the astronomical costs of litigating this case. BNY Mellon maintains the Russian claim lacks merit.
New York business litigation alerts regarding international banking by legal news reporter Heather L. Ryan.