You may recall the recent report
in Vanity Fair
magazine that highlighted the cozy, long term relationship between white collar fraudster, R. Allen Stanford and Kroll
- one that involved Stanford paying the investigative firm millions, reportedly, to run interference with inquisitive regulators
.Kroll is facing its first lawsuit
relating to the Sanford relationship, filed in Florida's Southern District Court. The complaint
has been brought by Electri International
, which lost millions investing in Stanford's Stanford International Bank only after hiring - you guessed it - Kroll to vet the deal.
Kroll reportedly issued SIB a clean bill of health
in their review, which they claim was "limited due diligence" costing Electri in the neighborhood of $15,000.
Even more interesting, Electri's contact at Kroll in the matter was Thomas V. Cash
, Kroll's managing director for investigations in Latin America and the Caribbean. According to Electri's complaint, Cash had been hired as a consultant by R. Allen Stanford in the late 1990s and Kroll never disclosed this relationship. Vanity Fair also named Cash as Kroll's point man with Stanford.
Kroll and Cash are keping mum about the particulars of the Electri lawsuit, but Cash did have this to say to the New York Post:
"I wouldn't believe everything I read in Vanity Fair because most of it's wrong."
Lets take him at his word for the moment and keep close eyes on Florida's Southern District Court.
Labels: due diligence, Electri, Kroll, lawsuit, R. Allen Stanford, Thomas Cash
You know they're coming, but how with they fare? Law.com lays down the handicap.
Labels: lawsuit, securities, shareholders
With its tax evasion and auction rate securities woes, UBS is sure getting it hard at both ends these days. Details on the NY suit right here
Labels: auction rate securities, lawsuit, tax evasion, UBS
And you can get all the gritty details
via Kevin LaCroix's D&O Diary
. While you're there, take some time to appreciate the great new site design.
Looks great Kevin!
Labels: class action, lawsuit, securities, Standford Securities Class Action Clearing House
Is there no honor
among thieves? At issue are shares of AIG subsid, Starr International Co. that Greenberg, along with six other AIG execs allegedly used as their personal money-pot
Labels: AIG, Hank Greenberg, lawsuit
Abel Malczon, the senior vice president of operations for American Savings Bank recent lest his employer of 23 years. In his wake Malczon left a pair of civil suits and a looming federal investigation. Details on Malczon at Pacific Business News
Labels: Abel Malczon, American Savings Bank, investigation, lawsuit
In a suit filed on Thursday, Russia alleges that between 1996 and 1999 Bank of New York
took part in a money laundering scheme that cost the Russian federation $22.5 billion dollars. This is not exactly a new story for Bank of New York, which has seemingly been involved in one Russian money laundering scandal or another for most of the last decade. Forbes provides a quick list of these past issues
and the AFP offers a response to the case from BNY
For a thorough run down of the intersection of BNY, Russia and scandal, try Russianlaw.org
, which seems to relish these things.
Labels: Bank of New York, lawsuit, money laundering, Russia