Letters to the Editor
sysprog
Published Letters: 1591 Editor's Choice: 2
-
Racketeers
[Read the article: Who funds and runs the Politico?]
[Read more letters about this article: Here]Here's some of the history of Riggs Bank, as documented in a successful class action suit against the Allbritton family.
https://ecf.dcd.uscourts.gov/cgi-bin/show_public_doc?2004cv2030-56UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIACivil Action No. 04-2030 (GK)
MEMORANDUM OPINION
. . . Defendants are Joseph Allbritton, Robert Allbritton, J. Carter Beese, Timothy Coughlin, Lawrence Hebert, Simon Kareri, and Robert Roane.
. . . Plaintiff alleges that Defendants, who are former directors or employees of Riggs, engaged in acts of money laundering, wire fraud, and mail fraud in violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. §§ 1961 et seq.
. . . Plaintiff’s Motion for Final Approval of Class Action Settlement and Certification of the Settlement Class is hereby granted . . .
. . . Defendants are all former directors or employees of Riggs, the corporate parent of Riggs Bank, which prior to its merger with PNC was the largest and one of the most prominent financial institutions headquartered in Washington, DC. Plaintiffs claim that between 1997 and 2004, Riggs Bank employees, and specifically the members of its International Banking Group, engaged in illegal money laundering, wire fraud, and mail fraud on behalf of several large clients. Riggs Bank’s more notable clients included General Augusto Pinochet of Chile, President Obiang Nguema Mbasogo of Equatorial Guinea, and members of the Saudi royal family. Defendants, Plaintiff alleges, knew such activities were occurring and actively encouraged them.
Beginning in 2002, when the Bank was cited by the Office of the Comptroller of the Currency (“OCC”) for weak anti-money laundering controls, Riggs became the subject of media reports regarding suspicious transactions in its International Banking Grooup. Based on those reports, the Senate Committee on Government Affairs began investigating Riggs in 2003.
In July 2003, Riggs entered into a Consent Order with the OCC that required the Bank to take various actions to ensure better compliance with the Bank Secrecy Act and other money laundering statutes. That Order also subjected Riggs to increased regulatory monitoring.
In May 2004, the OCC cited Riggs for failure to abide by the Consent Order and imposed a civil penalty of $25 million. (see also Terence O’Hara, Riggs Lost $34.4 Million, Hurt by Fines, Core Operations, WASH. POST, Aug. 10, 2004, at E01.)
Following its year-long investigation, the Senate Committee on Government Affairs issued a damaging report on July 15, 2004. The report accused Riggs Bank employees and directors, including several Defendants, of engaging in money laundering and fraud on behalf of certain clients, including General Pinochet and President Mbasogo. (See Terence O’Hara and Kathleen Day, Riggs Bank Hid Assets Of Pinochet, Report Says, WASH. POST, July 15, 2004, at A01.)
Just after the Senate Committee released its report, in August 2004, the U.S. Attorney’s Office for the District of Columbia and the U.S. Department of Justice opened criminal investigations into Riggs Bank’s operations. (See Kathleen Day, Criminal Probe of Riggs Bank Underway, WASH. POST, Aug. 21, 2004, at E01.) On January 27, 2005, Riggs entered a guilty plea to one charge of failure to report potential money laundering and agreed to pay a $16 million fine (see also Terence O’Hara, Riggs Bank Agrees to Guilty Plea And Fine, WASH. POST, Jan. 28. 2005, at A1.)
. . . PNC and Riggs began merger talks in the spring of 2004. On July 16, 2004, PNC agreed to purchase Riggs for $779 million, or approximately $24.25 per share. On February 7, 2005, however, shortly after Riggs entered its guilty plea, PNC backed out of the merger, citing “unexpected adverse developments at Riggs” and “a litany of legal and regulatory matters that Riggs continues to face.” Three days later, on February 10, 2005, PNC and Riggs announced that they had reached a new merger agreement, this time for $652 million or $20 per share.
. . . In its merger with Riggs, PNC agreed to indemnify all Riggs directors and employees for any litigation arising out of actions they took in their official capacities. Accordingly, PNC conducted the settlement negotiations described herein and is the sole contributor to the settlement fund that is currently before the Court . . .
-
Racketeers (continued)
[Read the article: Who funds and runs the Politico?]
[Read more letters about this article: Here]http://www.whitehouse.gov/news/releases/2007/02/20070214-2.html
THE WHITE HOUSE
For Immediate Release
Office of the Press Secretary
February 14, 2007
Press Conference by the President
The East Room11:01 A.M. EST
THE PRESIDENT: . . . I think you can be against my decision and support the troops, absolutely. But the proof will be whether or not you provide them the money necessary to do the mission. I said early in my comment -- my answer to Sheryl was, somebody who doesn't agree with my policy is just as patriotic a person as I am. Your question is valid. Can somebody say, we disagree with your tactics or strategy, but we support the military -- absolutely, sure. But what's going to be interesting is if they don't provide the flexibility and support for our troops that are there to enforce the strategy that David Petraeus, the general on the ground, thinks is necessary to accomplish the mission.
Michael. Michael, who do you work for?
(Laughter.)
Q Mr. President, I work for Politico.com.
THE PRESIDENT: Pardon me? Politico.com?
Q Yes, sir. Today.
(Laughter.)
THE PRESIDENT: You want a moment to explain to the American people exactly what --
(laughter.)
Q Mr. President, thank you for the question.
(Laughter.)
THE PRESIDENT: Quit being so evasive.
Q You should read it.
THE PRESIDENT: Is it good? You like it?
Q David Gregory --
THE PRESIDENT: David Gregory likes it. I can see the making of a testimonial.
(Laughter.)
THE PRESIDENT: Anyway, go ahead . . .