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To: Box-By-The-Riviera™ who wrote (165760)	5/14/2002 2:23:58 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 436258

DJ US Attorney: 4 Metals Traders Arrested In $600M Scheme 14 May 11:49 NEW YORK (Dow Jones)--The Manhattan U.S. attorney's office plans to hold a 2 p.m. press conference Tuesday to announce the arrests of four metal traders accused of taking part in a far-reaching scheme in which several banks lost more than $600 million. In a press release, Manhattan U.S. Attorney James B. Comey described the scheme as "domestic and international" in which banks both here and abroad lost money. Further details are expected to be released at the press conference. -Colleen DeBaise, Dow Jones Newswires; 212-227-2017; colleen.debaise@dowjones.com (END) DOW JONES NEWS 05-14-02 11:49 AM ------------------------------------------------------------------------ DJ Traders/Scheme -2: JP Morgan, Banks Were Cheated -Feds 14 May 13:52 The alleged scheme involved Allied Deals Inc., Hampton Lane Inc., and SAI Commodity Inc., a group of Piscataway, N.J., metal trading companies run by Narendra Kumar Rastogi, Anil Anand, Manoj Nijhawan and Udhay Shankar. The four traders were charged with fraud in a sealed criminal complaint filed Monday in Manhattan federal court. Authorities also said Rastogi's brother, Virendra, who owns London metal trading company RBG Resources PLC, took part in the scheme but wasn't criminally charged. Over the past several years, the defendants' companies allegedly entered into loan agreements that gave them access to hundreds of millions of dollars from numerous major banks, including J.P. Morgan Chase & Co. (JPM), Fleet National Bank, PNC Financial Services Group Inc.'s (PNC) PNC Bank, KBC Bank Deustchland AG (G.KBC), among others. As collateral for the loans, the companies generally provided the banks with security interests in the assets allegedly being financed. But in May 2000 the traders began fabricating collateral and misrepresenting business deals as part of an "elaborate" scheme to steal millions of dollars in loan proceeds from the bank, according to the complaint. The traders fabricated invoices and in many cases used loan proceeds from one bank to make loan payments to other banks in the nature of a Ponzi scheme, authorities alleged. Losses are still being tallied but the fraud scheme appears to have cheated the banks out of $600 million, according to the complaint. More details are to be announced at a 2 p.m. press conference. -Colleen DeBaise, Dow Jones Newswires, 212-227-2017, colleen.debaise@dowjones.com (END) DOW JONES NEWS 05-14-02 01:52 PM