“New York’s oldest bank could be on the hook for $22.5 billion if the Russian government gets its way. Russia is suing the Bank of New York Mellon under the Racketeer Influenced and Corrupt Organizations Act for money laundering in Moscow in the 1990s. The case, while potentially a financial disaster for the bank, is also a means for Russia to prosecute a bank that is widely viewed there as a symbol of the chaos and corruption that pervaded the country under President Yeltsin.”

-Julie Satow, April 2, 2008.

Delay in Moscow May Be Bad Sign for Bank of New York
Bad news was on the docket for the Bank of New York Mellon in Moscow early yesterday, as hearings in a racketeering case against the bank were postponed until Thursday, a move that may impede the ability of the bank to put on the stand a number of witnesses who flew to Moscow to help in its defense.

Dershowitz Argues for Foreign Use of RICO
In testimony that was to be submitted to a Moscow court yesterday, a Harvard Law School professor, Alan Dershowitz, states: “In sum, a RICO civil lawsuit brought by a foreign nation in a foreign tribunal premised on the type of gross misconduct alleged here, and in particular, this vast money laundering scheme, is consistent with and advances Congress’s goals in enacting a broad civil remedy and in ensuring its application in the global arena.” The testimony was withdrawn by the plaintiffs before being submitted.

‘Legal Nightmare’ Feared in Russia
Suit Against Bank of New York Mellon May Set RICO Precedent
The final stages of a $22.5 billion battle pitting the Bank of New York Mellon against the Russian Federation will begin today in a Russian court.

The case, one of the first uses of the American RICO statute in a foreign court, comes at a sensitive time for the two countries, as President Bush prepares to voice support for the expansion of the NATO alliance to include Georgia and Ukraine at a summit this week in Bucharest, Romania. Mr. Bush also is expected to meet with President Putin on Sunday in the Russian Black Sea port of Sochi, where

Bank of New York Fails To Set Aside Funds for Loss
A financial expert who was hired by the Russians to look into the financial standing of the Bank of New York Mellon, Kenneth Thomas, has launched a letter-writing and telephone campaign to warn regulators that the bank made a mistake is deciding against setting up a special contingency reserve for potential damages related to the case.

Battle of Titans Brewing Over New York Mellon
A clash of the titans is shaping up in Moscow, as the Bank of New York Mellon later this month will battle it out with the Russian Federation over a $22.5 billion money laundering case.

Bank of New York Says Russia Case ‘Totally Without Merit’
The Bank of New York Mellon is seeking to calm jittery shareholders and analysts by assuring them that any claims stemming from ongoing litigation in a Moscow court would have no material impact because the judgments could not be enforced.

Investors Scramble on Bank of New York
Investors are scrambling to reassess the outlook for the Bank of New York Mellon following yesterday’s report in The New York Sun that the Russian government is suing the bank in a Moscow court for $22.5 billion.

Russians Suing Bank of New York
Claim Is For $22.5 Billion in Money Laundering Case
New York’s oldest bank could be on the hook for $22.5 billion if the Russian government gets its way. Russia is suing the Bank of New York Mellon under the Racketeer Influenced and Corrupt Organizations Act for money laundering in Moscow in the 1990s. The case, while potentially a financial disaster for the bank, is also a means for Russia to prosecute a bank that is widely viewed there as a symbol of the chaos and corruption that pervaded the country under President Yeltsin.