Money Laundering Alleged
-- The Associated Press
N E W Y O R K, Aug. 19 — As much as $10 billion may have been laundered through the Bank of New York in the past year in what investigators reportedly say is an operation run by Russian organized crime.
Some $4.2 billion passed through a single account between October and March, The New York Times reported today, citing unidentified investigators.
The bank has suspended two senior officers in its Eastern European division — Natasha Gurfinkel Kagalovsky of New York and Lucy Edwards of London — pending the outcome of the investigation.
Kagalovsky declined comment. An aide to Edwards said she was traveling.
No Customer Funds Lost
Investigators here and abroad have examined whether front companies are raising money in North America for organized crime activities in Russia.
The accounts under scrutiny at the Bank of New York have been linked to Semyon Yukovich Mogilevich, who is believed to be a major figure in Russian organized crime, the Times said.
In a statement, the bank said it was cooperating with investigators and said no customer or bank funds had been lost.
“There are no allegations of wrongdoing by the bank,” the statement said.
The Bank of New York, with assets of $67 billion, is the nation's 17th largest.
Copyright 1999 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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