graphic
News > Companies
BNY exec shown the door
August 27, 1999: 4:35 p.m. ET

London executive fired amid Russian money laundering allegations
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - The Bank of New York Friday fired Lucy Edwards, one of the two senior executives it had suspended following allegations that Russian mobsters had funneled billions in illegal funds through U.S. and European banks.
     Edwards, the wife of Peter Berlin who allegedly opened accounts at the Bank of New York on behalf of Benex Worldwide Ltd. -- the company suspected of receiving and depositing the illicit funds -- had been suspended last week along with Natasha Kagalovsky, the wife Konstantin Kagalovsky, former deputy of the now-defunct Menatep Bank, which closed its doors after Russia's ruble crisis erupted in August 1998.
     Cary Giacalone, a Bank of New York spokesman, didn't elaborate on the action, only confirming that the bank had indeed relinquished Edwards from her duties. "We can confirm she was let go," he said. According to a Dow Jones Newswire story, sources close to the investigation said Edwards was fired for alleged gross misconduct, violations of the bank's internal policies, falsification of bank records and failure to cooperate.
     Bank of New York's swift move on Edwards is the latest in a bizarre series of convoluted and confusing stories about a money laundering sham from Russia in which billions of illegal funds were diverted into U.S. and European banks. So far no one has been charged with any wrongdoing in the affair, in which as much as $15 billion funds was reportedly diverted, then "cleaned" by Russian mobsters. Much of the money is said to have come from aid given by the International Monetary Fund.
    
Graphic

     Money laundering typically involves taking large cash deposits from individuals or businesses when the money is either suspected or known to have been obtained from illegal activities or for illicit purposes. The Bank Secrecy Act requires all U.S. banks to report cash deposits of $10,000 or more, as does the Money Laundering Act of 1986. Back to top

  RELATED STORIES

Ex-KGB in Russian scandal - Aug. 27, 1999

Yeltsin part of Russian scandal? - Aug. 27, 1999

Russian scandal widens - Aug. 26, 1999

  RELATED SITES

Bank of New York


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic


Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.