Legal News

Allied Irish Bank Sues Citibank for Fraud
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Allied Irish Bank

Summary: The lawsuit alleges that Citibank helped a foreign currency trader avoid internal controls on traders with Allied Irish Bank.

Highly profitable Allied Irish Bank trader, John Rusnak, was covering over $690 million in losses with the possible assistance of Citibank between 1997 and 2002. Citibank served as his prime broker for foreign currency trading from 2000 to 2002.

  
What
Where


The lawsuit filed by Allied Irish Banks is finally moving forward after 12 years. The federal judge ruled that Allied Irish Bank has provided enough evidence that the Rusnak’s fraud “would have been discovered earlier but for Citibank’s alleged fraud.” Certain red flags would have been easily apparent to an honest establishment, concluding that Citibank was somehow involved.

Southern District Judge Deborah Batts stated in her denial of Citibank’s motion for summary judgement that “Citibank made no effort to verify the propriety” of particular “unorthodox requests” that Rusnak had made to alter or restrict access of Allied Irish Bank to documents Citibank was required to produce to the auditors in charge of investigating fraud.

In February 2002, Allied Irish Bank discovered the fraud. Rusnak worked at their Allfirst unit in Baltimore. In October, Rusnak plead guilty to federal charges. He served in prison for almost six years and now manages a chain of dry cleaners in Southern California.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Thomas Moloney of Cleary Gottlieb Steen & Hamilton is representing Citibank.

Alan Levine of Cooley is representing Allied Irish Bank.



 

Read about Citibank’s other legal issues: “Did Citibank Conspire to Hide Dewey’s Financial Weaknesses?” and “Citibank Denies Duty to Warn Former Partners of Dewey on Capital Loans

Source: http://www.newyorklawjournal.com/home/id=1202731247099

Photo: theguardian.com



 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney

USA-WY-Laramie

Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now

RELEVANT JOBS

Commercial Real Estate Attorney

USA-NY-New York City

Midtown, mid-sized real estate law firm seeks experienced Commercial Real Estate Attorney with 5 or ...

Apply now

Real Estate Tax Certiorari Attorney

USA-NY-New York City

Midtown, mid-sized law firm seeks experienced Real Estate Tax Certiorari Attorney in its high volume...

Apply now

Commercial Litigation Attorney

USA-NY-New York City

Midtown, mid-sized law firm is seeking a Commercial Litigation Attorney with a minimum of 3 years of...

Apply now

Associate Attorney

USA-WA-Kennewick

Extremely busy Tri Cities, WA law firm announces a new opening for an associate attorney.  We p...

Apply now

SEARCH IN ARCHIVE

To Top