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BT execs charged
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July 19, 1999: 4:10 p.m. ET
Three former Bankers Trust execs charged in scheme to enhance books
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NEW YORK (CNNfn) - Three former executives at Bankers Trust were indicted Monday on charges of listing unclaimed customer funds as income and reserves to falsely enhance the company's performance.
The defendants are Bruce Kingdon, a former partner and managing director in charge of Client Processing Services, known as CPS; Kenneth Goglia, former managing director and controller of the unit; and Harvey Plante, former vice president of the unit.
The three men were charged with diverting $15.5 million in unclaimed customer checks and deposits to meet financial targets. They were fired from Bankers Trust after the violations came to light.
Bankers Trust pleaded guilty to criminal record-keeping violations in March and agreed to pay a $60 million fine to federal authorities and an additional $3.5 million to New York state. The company also aided the investigation, which led to Monday's indictment.
Kingdon was one of Bankers Trust's senior managing directors and a partner, a title given to a select group of senior officers of the corporation. He reported to the president, vice-chairman and chairman of Bankers Trust.
His responsibilities included setting CPS' financial targets in consultation with the bank's senior management, as well as directing CPS' senior executives to achieve the targets.
The men are charged with one count of conspiracy, 12 counts of misapplication of bank funds, and 12 counts of making false entries in bank books and records. Kingdon and Goglia also are charged with two counts of transferring funds from employee benefit plans.
Banker's Trust is now owned by Deutsche Bank AG.
--from staff and wire reports
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