In a historic decision on February 29, the New York State Supreme Court, First Appellate Department, ruled in favour of Bangladesh Bank in its pursuit of justice against Rizal Commercial Banking Corporation (RCBC) and key individuals involved in the infamous theft of approximately $81 million, reports UNB.
The First Appellate Department confirmed that New York would be the venue for litigation arising from RCBC's theft of Bangladesh Bank's funds, highlighting the significance of the ruling, according to a press release of Bangladesh Bank.
Notably, the court affirmed the trial court's decision that RCBC, along with its senior executives Lorenzo Tan and Raul Victor B. Tan, and Kam Sin (Kim) Wong, could be held liable in New York courts for their involvement in the elaborate heist, it said.
The court ruling holds RCBC and its senior management accountable for their role in the fraud perpetrated against Bangladesh Bank.
It allows Bangladesh Bank to pursue the defendants for the funds they controlled, which were knowingly laundered through foreign exchanges and the RCBC Treasury.
The court emphasised the defendants' failure to respond to Bangladesh Bank's stop payment request and return the stolen funds.
Additionally, the court addressed the transfer of approximately $58.2 million of stolen funds to accounts under fictitious names after RCBC received stop payment requests.
The judgment highlighted RCBC's creation of fictitious accounts, the use of New York correspondent accounts for the theft, and profitable foreign exchange trades on the stolen funds, said the release.
The court also ruled against Wong, stating that the bank had sufficiently alleged his involvement in the conspiracy, including theft and money laundering.
For Lorenzo Tan, the court underscored allegations of his close association with Wong and failure to take action after the stolen funds were transferred to fictitious RCBC accounts.
While the First Department dismissed some individual RCBC employees and conversion claims, it allowed Bangladesh Bank to move forward with claims in fraud, unjust enrichment, trespass, and money had and received against the defendants.
The decision strengthens Bangladesh Bank's resolve to pursue justice in New York, where the money was stolen, showcasing a significant step forward in recovering the stolen funds, added the release.
Bangladesh Bank expressed satisfaction with the decision, emphasizing its commitment to holding the alleged co-conspirators accountable.
The ruling sets the stage for further legal proceedings, with Bangladesh Bank considering its response, including potential appeals and responses to any appeal by the remaining RCBC defendants and Kim Wong.
This landmark decision is a crucial victory for Bangladesh Bank, bringing the institution one step closer to recovering the stolen funds and holding those responsible for the heist accountable.
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