Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point

In Depth

On Air

Archive
Feedback
Low Graphics
Help

Wednesday, October 6, 1999 Published at 03:23 GMT 04:23 UK


World: Americas

Three charged in NY bank scandal

The scandal may even involve IMF loans to Russia

United States prosecutors have issued charges against three people in one of the biggest money-laundering cases in American history.

The Russian mafia is said to have illegally channelled billions of dollars through accounts at the Bank of New York.

Charges have been filed in a federal court in Manhattan against a former executive at the bank, Lucy Edwards, her husband, Peter Berlin and another man, Aleksiy Volkov.

They are charged with conspiring to transmit funds and receive deposits illegally. Some $7bn in accounts at the Bank of New York is said to be involved.

Three companies - Benex International Co. Inc., Becs International L.L.C., both of New Jersey, and New York-based Torfinex Corp - were also named in the indictment, but not the Bank of New York itself.

Lawyers for Ms Edwards and Mr Berlin said the couple - who live in London - will "appear in whatever court they're required to appear in."

US prosecutors believe Mr Volkov is not in the country.

Following the money

The wider claims of a money trail stretching from Moscow to New York have already raised concern among politicians in Russia and the United States.

The International Monetary Fund and the World Bank are working to account for all their funds which have headed to Moscow, but say there is no evidence so far that any went missing.

Finance ministers of the leading industrialised countries warned last month that Russia would only get the next tranche of its loan from the International Monetary Fund (IMF) , if it enforced stronger safeguards against corruption.

They added that there was an urgent need for Russia to fight corruption and money laundering.

Swiss banks have frozen nearly $17m of funds owned by the Bank of New York, and have ordered investigators in Geneva to look into the affair.

Russia has angrily denied any government - or presidential involvement - in the scandal.





Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage | ©




Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia



Relevant Stories

26 Sep 99 | The Economy
Russia urged to fight corruption

21 Sep 99 | Europe
Swiss freeze US funds

12 Sep 99 | Europe
Clinton says corruption could destroy Russia

31 Aug 99 | Europe
Q&A: Is money laundering Russia's growth business?





Internet Links


International Monetary Fund

Bank of New York


The BBC is not responsible for the content of external internet sites.




In this section

From Business
Microsoft trial mediator appointed

Safety chief deplores crash speculation

From Entertainment
Taxman scoops a million

Violence greets Clinton visit

Bush outlines foreign policy

Boy held after US school shooting

Memorial for bonfire dead

Senate passes US budget

New constitution for Venezuela

North Korea expels US 'spy'

Hurricane Lenny abates

UN welcomes US paying dues

Chavez praises 'advanced' constitution

In pictures: Castro strikes out Chavez

WTO: arbitration in EU-Ecuador banana dispute

Colombian army chief says rebels defeated

Colombian president lambasts rebels