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RUSSIAN MOB CONTROLLED BANK AT THE HEART OF MONEY LAUNDERING SCANDAL

Bank error: Russia's awful banks: Russia's corrupt and unreformed banks are ensuring that the country's economy deserves the same adjectives
The Economist, 09/30/2000
EVERYBODY agrees, but nobody acts. That familiar theme from Russian literature echoes through the tragi-comedy of the country's crippled and poorly supervised banking system, which consists largely of grandly named but tiny outfits that conduct murky treasury operations for their owners...  In particular, the central bank has hamstrung the feeble efforts of ARKO, the bank-restructuring agency, to deal with the aftermath of the 1998 crisis. More than two years later, the authorities have been unable to close down even such spectacularly bust banks as Inkombank ...

Russian TV describes new balance of power in country's business elite
BBC Monitoring 09/24/2000
Two of 13 captains of Russian business who led Boris Yelstin to power in 1996, Stolichnyy bank head Aleksandr Smolenskiy and Inkombank head Vladimir Vinogradov, have completely disappeared from the scene.

"Fallen Comrades" in Russiangate Drama. Have Bank of New York Officials Received Payoffs to Help Launder "Russian Dollars"? Moscow Telegraph August 29, 2000 by Emily Topol
Documents obtained by MT show that top officers of the Bank of New York, including its chairman Thomas Renyi, may have received hefty payoffs through an elaborate network of offshore companies. One such document is a chart of various offshore entities used in a grand scheme of funneling "Russian dollars" into the pockets of the members of BONY Olympus.

Russian bank declared bankrupt
02/02/2000 BBC Worldwide Monitoring Moscow, 2nd February: The Moscow Arbitration Court on Wednesday declared Inkombank bankrupt.

Truth is Still Uncertain
BRIDGE NEWS, December 23, 1999, By Heather MacGregor
Reports are coming from all directions in the looming Russia money laundering scandal with no end in sight. Just last week, Segodnya, a Russian daily known for its Communist stance, alleged a former CIA bureau chief, Fritz Ermarth, masterminded the scandal surrounding the Bank of New York and then cleverly led people from around the world to pursue that twist.

Judge OKs subpoena of BONY exec in suit
BRIDGE NEWS November 23, 1999. RUSSIA LAUNDERING Judge OKs subpoena of BONY exec in suit --By Heather MacGregor
A US federal judge agreed to allow plaintiffs to subpoena former senior executive Natasha Gurfinkel Kagalovsky to give her deposition. The plaintiffs, a group of depositors of the now-insolvent Russian bank Inkombank, allege the Bank of New York aided the Russian bank in a money laundering scheme.

Natasha Kagalovsky Rose Fast, Fell Hard at Bank of New York
THE WALL STREET JOURNAL, 11/23/99 By ANN DAVIS and PAUL BECKETT
People familiar with the matter say some of Ms. Kagalovsky's own executives knew about the transfer system. Authorities also are examining whether she became too close to one of her biggest clients, Inkombank, which she supported in an application to open a U.S. office shortly before Russian regulators criticized the bank's bookkeeping.

US bank regulator 'warned about bribes'
The Times of London Nov. 05, 1999

Inkombank chief says US officials bribed
Moscow Telegraph, November 5, 1999 by Victor Simony
A former head of Russia's now-insolvent Inkombank told a confidante last summer that the bank routinely paid bribes to US official in Washington and used a mesh of offshore accounts to cover the tracks. The confidante, who asked to be referred to by his first name Mikhail, said US officials were not mentioned by name or agency.

Fresh Claim About Banker in 'Dirty Cash' ...
The Times of London, November 4, 1999. By JAMES BONE IN NEW YORK
AND DAVID LISTER
A KEY executive at the Bank of New York appears to have been granted "power of attorney" over an offshore company linked to part of a suspected money-laundering scandal. An investigation by The Times has established that Natasha Gurfinkel Kagalovsky, who recently resigned as the head of the Bank of New York's Eastern Europe division, was given authority in 1995 over a Liechtenstein company, Tetra Finance Establishment.

Bank of NY Scandal Widens; Senior Exec Implicated
Bridge News By Heather MacGregor, November 1, 1999
The Russia money-laundering scandal is expanding to link former top Bank of New York executive Natasha Gurfinkel Kagalovsky directly to Inkombank, a Russian bank with alleged organized crime ties, according to documents given to Bridge News. The Bank of New York was Inkombank's correspondent bank since 1992, and continued to do business with it despite years of accusations against the Russian bank dating back at least to 1995.

New allegations of money laundering through the Bank of New York CNN-Moneyline News Hour October 28, 1999 Italian prosecutors say they've discovered evidence that Russian criminal organizations washed millions through the bank.... "And who knows where it's going to end up" says Emanuel Zeltser, Director of American Russian Law Institute, "it's certainly not going to stop at Natasha Gurfinkel's level."

World Bank Probes Russian Member's Ties to Inkombank Memos Suggest Grigoriev Gave Private Bank Tips On Debt Investments
THE WALL STREET JOURNAL, October 22, 1999, By Wall Street Journal staff reporters Andrew Higgins in Moscow, Paul Beckett in New York and Michael M. Phillips in Washington.
The World Bank is investigating whether a senior Russian representative to the international financial organization provided inside information and other assistance to a private Moscow bank. The World Bank began its inquiry after reviewing documents indicating that Leonid Grigoriev , a senior member of Russia's World Bank mission in Washington from 1992 to 1997, provided Moscow-based Inkombank with tips on debt-market investments and acted as its liaison in the U.S. Inkombank was one of Russia's largest banks until it lost its license last year.

Inkombank Used US Accounts for Sham Office
BRIDGE NEWS, October 13, 1999
Russia's now-insolvent commercial bank Inkombank used front companies and US bank accounts to run an unlicensed banking operation in New York between 1994 and 1996, according to documents obtained by Bridge News. The alleged operations closely resemble other transactions that are the target of an indictment unsealed here last week as part of the international investigation into alleged money laundering by Russian organized crime.   

Inquiry on Bank Transfers Could Grow
The Wall Street Journal Europe By Paul Beckett and Michael Allen, 10/08/1999
... Bank of New York is facing a $1 billion lawsuit from depositors of Russia's defunct Inkombank, who allege that the New York bank helped Inkombank managers loot hundreds of millions of dollars from their institution by serving as a business connection to the West.  ... Emanuel Zeltser , one of the plaintiff's attorneys, said, "Over a hundred thousand people, primarily old people, lost their life's savings, and the purpose of this lawsuit is to retrieve at least some of it."

Russian bank clients sue BoNY. Depositors claim New York bank knew about fraud
USA Today 10/08/1999 by James Kim
Depositors of a failed Russian bank sued the Bank of New York on Thursday, charging that BoNY helped the Russian bank defraud customers. The Russian bank, Inkombank, had its banking license revoked by Russian officials in Moscow a year ago. ... ... The depositors' attorney team includes Emanuel Zeltser , who has tangled with Inkombank in another lawsuit. That suit produced reams of evidence that might be used in this action.

Two Firms in Money-Laundering Probe...
The Wall Street Journal By Paul Beckett and Michael Allen   10/08/1999
...  Bank of New York is facing a $1 billion lawsuit from depositors of Russia's defunct Inkombank, who allege that the New York bank helped Inkombank managers loot hundreds of millions of dollars from their institution by serving as a business connection to the West. ... ... Emanuel Zeltser , one of the plaintiff's attorneys, said: "Over a hundred thousand people, primarily old people, lost their life's savings, and the purpose of this lawsuit is to retrieve at least some of it."

Russia's Inkombank Depositors Sue Bank Of New York For $500 Million
THE WALL STREET JOURNAL, October 7, 1999
Several depositors of Russia's Inkombank filed a lawsuit Thursday against Bank of New York Co. alleging the U.S. bank assisted the Russian bank's principals in embezzling $1.5 billion in assets. The depositors' suit, filed in federal court in Manhattan, seeks $500 million in damages. Inkombank, which collapsed in October 1998, was one of the Bank of New York's (BK) most profitable customers. Bank of New York has suspended Natasha Gurfinkel Kagalovsky, the executive who helped Inkombank in the U.S., in connection with a federal investigation into possible money laundering through accounts at Bank of New York.

Ex-Inkombank attorney now heads bank agency
BRIDGE NEWS, Oct 1, 1999 By Heather MacGregor
The head of the legal department of the now-defunct Inkombank--a bank proclaimed as being fraudulent by the Central Bank of Russia is now heading Russia's Agency on Restructuring of Credit Organizations (ARCO). Alexander Turbanov led Inkombank's legal department in 1993 before being appointed Central Bank deputy chairman, according to Inkombank's telephone directory at the time and those who knew him. The Central Bank of Russia revoked Inkombank's license in October 1998 for violating several laws and the rules of the Central Bank.

MONEYLINE with Bill Dorman
CNN Aired September 28, 1999 - 6:30 p.m. ET
New allegations of money laundering through the Bank of New York tonight. "... who knows where it's going to end up? It's certainly not going to stop at Natasha Gurfinkel's level" says Zeltser, Director of the American Russian Law Institute

Russia's Ruble Shakedown
TIME MAGAZINE, page 1.  BY JOHANNA MCGEARY, SEPTEMBER 27, 1999
On April 23, 1996, under the letterhead of the venerable bank founded by Alexander Hamilton, which made the very first loan to the fledgling U.S. government in the 1780s, Gurfinkel wrote a fulsome letter to Federal Reserve chairman Alan Greenspan, urging the Fed to let Inkombank open a representative office in the U.S. Never mind that 14 months earlier some of the bank's largest shareholders had filed suit charging Inkombank with outright theft of $40 million in capital. Or that just a month before, the Russian central bank had issued a harshly critical audit of Inkombank irregularities.

Allegations help topple once elite Russian bank
USA TODAY By James Kim  Sept. 24, 1999
Inkombank, once an elite Russian bank that many hoped would lead the nation into a new era, had its license revoked by banking officials in Moscow last year. Some felt it was simply a victim of the country's financial crisis. But Inkombank -- which was a top client of the Bank of New York (BoNY) -- also was derailed by allegations that it defrauded shareholders, aligned itself with organized crime groups, engaged in money laundering, operated illegally in New York and threatened witnesses.

Full Speed Ahead in Fog of Russian Economy, Bank of New York Hit a Shoal
The New York Times, September 23, 1999 By MICHAEL R. GORDON and NEELA BANERJEE
... the Bank of New York was one of a number of banks that did pick up the account, displaying an aggressiveness that has made it the leading American bank in Russia. There is no data available that establishes a clear link between the success of the bank's settlement business in Moscow and the money that flowed through bank accounts in London and New York that are under investigation. What is clear is that the Bank of New York led the field, with clients that included major Russian banks like Inkombank, Menatep and Sberbank, which is owned by the Government.

Inkombank's Questionable Past
USA Today by James Kim 08/30/1999
BoNY helped one of its top Russian clients, Inkombank, win regulatory approval to sell its stock in the USA as American depositary receipts (ADRs) in 1996. At the time, however, Inkombank's financial status was being challenged in Russia.Then, Russian bank regulators were investigating the bank. A 1996 report by Russia's central bank found that Inkombank had violated numerous laws and accounting rules. The report said the bank inflated its income in 1995 by "tens of billions of rubles."

Tape: Bank of N.Y. Bigs Knew of Russian Scam
The New York Post 8/28/99 By AL GUART and JESSE ANGELO
A Bank of New York veep indicated in 1996 that he and his bosses knew Russian bank officials were using BNY to steal from their depositors, according to a transcript of secretly taped conversation. BNY has been at the center of a massive  money- laundering probe as agents from the FBI, IRS and three foreign countries to try to determine if the Russian mob laundered up to $15 billion through its accounts. According to the transcript, which is to be part of a planned suit against BNY, bank VP Vladimir Galitzine apparently knew officials at the now-defunct Inkombank were ripping off its depositors.

Wringer time for money launderers
USA TODAY By Tom Lowry  Fri., Aug. 27, 1999
Explosive allegations that the Russian mob laundered as much as $15 billion here through two leading banks underscores troubling fissures in the U.S. banking system. ... ... Inkombank, once one of Russia's largest banks that allegedly had ties to organized crime, had correspondent banking relationships with Citibank, Bank of New York, Republic National Bank and Bankers Trust among others, according to court documents filed in a lawsuit brought by the bank's Western shareholders against the bank and its lawyers. Russian regulators declared the bank insolvent last year.

Probe Into Bank of New York Accounts Includes Links to Russia's Inkombank
THE WALL STREET JOURNAL, August 24, 1999 By PAUL BECKETT
Federal authorities probing possible money-laundering through accounts at Bank of New York Co. are examining the U.S. bank's longstanding relationship with Russian bank Inkombank, people familiar with the matter say. Inkombank, now in liquidation, was one of Bank of New York's most profitable customers. Bank of New York established itself as Inkombank's correspondent bank in 1992 to facilitate international wire transfers.

Bank Made Killing on Mob
The New York Post 08/21/99 by Al Guart
The Bank of New York raked in up to $240 million a month in fees as its crime-ridden counterparts in Russia used the bank to loot depositors and launder billions, documents show. ... ... Meanwhile, BNY will be slapped with a massive class-action lawsuit in the next few weeks for "aiding and abetting" Russian organized crime in ripping off shareholders and depositors of up to 100 Russian banks, lawyer Emmanuel Zeltser said.

Money Laundering Laundering Puts Focus on Bank Insiders
Chicago Tribune. 08/20/1999
Despite a government requirement that banks report suspicious account activity, bank insiders bent on money-laundering or other criminal pursuits can still beat the system, experts say. Bank of New York Co., the nation's 15th-largest, has suspended two executives following an investigation into accusations that Russian mobsters holding accounts may have laundered billions of dollars.

Bank in Laundering Inquiry Courted Russians Zealously
The New York Times. August 20, 1999. By TIMOTHY L. O'BRIEN with RAYMOND BONNER
The Bank of New York, in an effort to expand a lucrative business in Eastern Europe over the last several years, aggressively pursued relationships with Russia's largest banks, a strategy that might have led to the embarrassing questions about money laundering now being posed by Federal investigators. ... ... One of [Kagalovsky's] best customers was Inkombank, a fast-growing Russian bank that handled more than 250 payments a day through the Bank of New York. Inkombank brought its business to the Bank of New York from the Republic New York Corporation in 1992 because Ms. Kagalovsky promised to be less vigilant than Republic about the way Inkombank's accounts were handled, according to Emanuel E. Zeltser, once ...

U.S. Lawyers Hired as Spin Doctors for Russian Mob
Moscow Telegraph, April 30, 1999
A New York law firm, Christy & Viener, is being sued in US District Court (Southern District) by western shareholders and creditors of a Russian bank, Inkombank. Plaintiff-shareholders allege that the firm's senior, 75 year old Arthur Christy, helped Inkombank's management to defraud the Western investors and launder their funds through an elaborate network of offshore companies. The motive? The best of them all - Inkombank's boss, V. Vinogradov, grumbled that last year alone Inkom paid Christy over 1.5 million USD ...

Neutralizing Whistle Blowers
Moscow Telegraph April 11, 1999 by Maria Berdnikova
RUSSIAN MOB-NEW YORK BAR, JOIN FORCES?

THE DECLINE AND FALL OF VLADIMIR VINOGRADOV
Radio Liberty December 22 1998; by Julie A. Corwin. The rise of former Inkombank President Vladimir Vinogradov to the top of Russia's financial and political circles was rapid, but his fall was even quicker. In a little over two months, Vinogradov went from being one of Russia's handful of "oligarchs," a small elite of powerful businessmen and financiers who reportedly rule the nation, to the disgraced former head of a financial institution on the brink of receivership.

Gag Order of Judge Duffy
Moscow News December 17, 1998 by: EMILY TOPOL
Is this really a "crisis or a gigantic theft camouflaged as  crisis?

Testimonial With a Rope Around one's Neck. Inkombank's Ex-Boss Strikes the Deal of his Life
Moscow Telegraph  July 6, 1998 by Emily Topol
For the past three years Doudkin, who was named amongst defendants in the proceedings in US Federal Court, despondently avoided participation in this litigation. According to an Inkombank source, who understandably requested to remain incognito, Inkom's bosses were not too eager to expose their shame, allowing Doudkin to remain silent. No longer - this is a do or die situation - for Doudkin that is. He must now officially deny all that he ever said, signed, did or was. An alternative? Doudkin knows the alternative too well, the source says - this is a testimonial with a rope around one's neck - he says what he must or forever holds his peace ... in a better world.

Inkombank Duping US Companies?
Thursday, June 5, 1997, Intercon International. Intercon has recently obtained documents from legal offices representing the rights of aggrieved shareholders of Inkombank, one of Russia's largest commercial banks. The documents allege that the management of Inkombank has been engaged in massive fraud and embezzlement against shareholders, creditors, and various Western companies, as well as being involved in drug trafficking.

  How Inkombank Duped American Investors.  
Russia Bulletin. May 30, 1997 By Natalia Vdovina
Pending in the Federal Court of the United States in the stage of pre-trial discovery is civil matter No. 95 ___ , a lawsuit of Foreign Investors Portfolio Management, Inc. (FIPM) against the Russian bank, Inkombank. FIPM, which represents the interests of three Western firms, the shareholders of Inkombank, accuses the latter of unlawful conduct described as fraud.

KILLED ON THE EVE OF MARCH THE 8TH DAY
ITAR-TASS. March 10, 1997
Ms. Kompasova was shot five times point blank on the eve of the March the Eighth Day which caused a turbulent resonance in this city. ... ...  Petition emphasizes that behind the hired killers stand the private interests of the confectionery factory "Babayevskaya" and Inkombank.

In Bed with a Banker
MK Daily September 25, 1996, by: Olga Kedrin
The life paths of a Byelorussian prostitute and a Russian banker crossed on the other side of the ocean, in America. Had they not, Janna Boulakh would still be soliciting clients on Brighton Beach and Inkombank's First Vice-President, Alexei Kouznetsov would be spending all of his time thinking of his bank's prosperity. Today both can say "We've made it!" The "sweet couple" has the world at their whim, from extravagant villas to lavish limousines. This opulence is founded upon the moneys of Inkombank's clients, even though the clients themselves are not exactly aware of that

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