Societe Generale Bank on trial in French-Israel scam.. and New York scam

Societe Generale on trial in French-Israel scam
8 hours ago

PARIS (AFP) — Embattled French bank Societe Generale faces fresh troubles Monday when a trial opens in Paris involving a vast money laundering scam between France and Israel.

Four banks, including Societe Generale, and 138 people, including the bank's chairman Daniel Bouton, are on trial over the multi-billion dollar scam that allegedly began in the late 1990s.
The other banks include Societe Marseillaise de Credit, Barclays France and the National Bank of Pakistan.

Societe Generale revealed late last month it had lost a staggering 4.8 billion euros (7.1 billion dollars) in the biggest rogue trading scandal in history.

Takeover talk is now swirling around France's third largest bank, with two French banks eyeing a possible bid on Societe Generale.

Allegations of a money laundering network stretching between France and Israel initially surfaced during an investigation into a separate fraud involving companies in the Sentier garment-making district of Paris.

Cheques trafficked from France were allegedly cleared in money exchange offices or banks in Israel, where a third party can clear a cheque by paying a cash sum, making it difficult to trace the origin of the funds. The sums were then repatriated to French banks.
Among those charged in the France-Israel scam include six rabbis, a former French prosecutor and 57-year-old Bouton, along with other banking managers.

In the case of Societe Generale, investigators cite one example in which the bank received seven million euros (10.4 million dollars) in stolen cheques from the Israel Discount Bank between 1997 to 2001, "knowing these influxes had a criminal origin."
All four banks are charged with contributing to money laundering and profiting from the deals. All deny the charges.

"Societe Generale and its representatives did not -- either knowingly or unknowingly -- participate in this system and in no way committed the crime of money laundering they are charged with," the bank's lawyer Francois Martineau said.
Bouton is accused of turning a blind eye to the cheque system, though his lawyers insist he knew nothing about it.

Investigators have gathered 600 tonnes of paperwork and evidence for the trial which is expected to last until July.
Eighty five people have already been found guilty over the case in 2004. Some of those defendants are back on trial facing new charges.

Source:AFP

But wait, there's more:

Federal Deposit Insurance Corporation, and New York State Banking Department Assess Civil Money Penalty Against Israel Discount Bank of New York

The Financial Crimes Enforcement Network (FinCEN), Federal Deposit Insurance Corporation (FDIC), and the New York State Banking Department (NYSBD) today announced the assessment of civil money penalties of $12 million against Israel Discount Bank of New York for violations of federal and state anti-money laundering laws and regulations. This is in addition to the $8.5 million already paid to the New York District Attorney's Office pursuant to an agreement reached with the bank in December 2005. Israel Discount Bank of New York, without admitting or denying the allegations, consented to payment of the civil money penalties.

In taking these actions, FinCEN, FDIC, and NYSBD determined that Israel Discount Bank of New York failed to implement an adequate Bank Secrecy Act/anti-money laundering program, with internal controls and appropriate measures to detect and report money laundering and other suspicious activity in a timely manner. The agencies found that the deficiencies in the Bank Secrecy Act/anti-money laundering program included failure to establish appropriate, specific due diligence policies, procedures and controls reasonably designed to detect and report instances of money laundering through its correspondent accounts for non-U.S. persons, as required by section 312 of the USA PATRIOT Act and its implementing regulations.

Source: FINCEN.gov

And more still!

Report: Discount Bank’s NY branch managed Iranians’ accounts

Quarterly report reveals transfer of funds to citizens of Islamic Republic; bank may be slapped with million dollar fine
Avi Shauli Published: 05.28.07

Israel Discount Bank’s (IDB) New York branch managed Iranian accounts and transferred funds to citizens of the Islamic Republic, according to the bank’s 2007 quarterly report, published on Monday.

“The bank notified the Office of Foreign Assets Control (OFAC) of the transactions and hired consultants to examine the matter,” the bank said in a statement.

“An attorney hired to assess the issue said the bank could be fined as much as a million dollars.”

Last month Matthew Bronfman, the controlling shareholder at IDB, resigned from his post as chairman of the Discount Bank Corp and from the board of the bank's New York branch over alleged irregularities.

In 2005 Israel Discount Bank of New York agreed to pay up to $25 million to settle state and federal claims that it allowed illegal Brazilian money transmitters to move $2.2 billion through its offices during the previous five years.

Source: Ynet.news

Donate a few bucks to an Islamic charity and the feds will send out the hellhounds to take you down, by hook or crook.

Launder vast sums of money for who knows what purposes thru Israel and you might get a slap on the wrist fine, which you can then dump off on the stockholders.

Any bank that lets a 3rd party cash a check by paying a cash sum upfront is obviously invovled in shady dealings.

Any bets as to whether or not France's version of Mussolini gets involved in this trial some way and gets the case tossed?