.P. Morgan Says Argentine Unit May Have Committed Fraud
By Andrew J. Barden
Buenos Aires, Jan. 30 (Bloomberg) -- J.P. Morgan Chase & Co. told Argentine authorities a bank it controls with Credit Suisse First Boston and Dresdner Bank AG may have broken the law by moving $260 million overseas after the government banned such transfers, a federal judge said.
A J.P. Morgan spokeswoman in New York said the U.S. bank's lawyers contacted Argentina's central bank about the alleged fraud. Carlos Rohm, vice president of the Argentine bank Banco General de Negocios SA, has been held since Jan. 23 on charges that allege he violated restrictions started in December that prohibit the transfer of money out of the country.
``We're shocked and we are saddened to learn about these allegations and the bank is aiding and cooperating in the investigation in every possible way,'' said Brooke Harlow, a J.P. Morgan spokeswoman in New York.
CSFB and Dresdner officials weren't immediately available to comment. Rohm's lawyer Alfredo Iribarren has asked a federal court to throw out the charges against his client, saying they are unfounded.
Maria Servini de Cubria, the federal judge in Buenos Aires who ordered Rohm's arrest, detailed on Argentina's Todo Noticias television station conversations she had with lawyers from J.P. Morgan.
CSFB
CSFB officials in Switzerland told J.P. Morgan about the alleged fraud after receiving information from Carlos Rohm's brother, Jose Rohm, the chief executive of the Argentine bank, Servini de Cubria said.
``There's been a presentation by the Argentine central bank, where in a document the legal representative of J.P. Morgan made an allegation saying that Jose Rohm accused his brother of a fraud'' totaling $260 million, Servini de Cubria said.
Jose Rohm denies he accused his brother, La Nacion newspaper reported.
Carlos Rohm was detained by police Jan. 23 at the international airport in Buenos Aires as he tried to board a plane to Switzerland to attend a bank board meeting. His brother flew to Switzerland on an earlier flight for the meeting.
Credit Suisse owns 26.37 percent of Banco General de Negocios, J.P. Morgan owns 26.03 percent and Dresdner owns 26.08 percent, according to CSFB spokeswoman Cristina von Bargen. |
