| Thursday, August 19, 1999 N.Y.
Bank Said in Laundering Scheme NEW
YORK (AP) - As much
as $10 billion may have been laundered
through the Bank of New York in the past
year in what investigators say is an
operation run by Russian organized crime,
The New York Times reported
Thursday. Some $4.2 billion passed through a
single account between October and March,
the newspaper reported, citing
unidentified investigators. The bank has suspended two senior
officers in its Eastern European division
- Natasha Gurfinkel Kagalovsky of
New York and Lucy Edwards of London
- pending the outcome of the
investigation. Ms. Kagalovsky declined comment. An
aide to Ms. Edwards said she was
traveling. Investigators here and abroad have
examined whether front companies are
raising money in North America for
organized crime activities in Russia. The accounts under scrutiny at the Bank
of New York have been linked to Semyon
Yukovich Mogilevich, who is believed
to be a major figure in Russian organized
crime, the Times said. In a statement, the bank said it was
cooperating with investigators and said no
customer or bank funds had been lost. "There are no allegations of wrongdoing
by the bank," the statement said. The Bank of New York, with assets of
$67 billion, is the nation's 17th
largest. | 
This
kind of reporting confirms our faith in
the integrity of the reporting of The New
York Times. Semyon Yukovich
Mogilevich was identified as a
"Russian" by Matt Drudge. We wonder
about the affiliations of the NYC banker
who, allegedly, helped launder and process
his $10 billion US dollars, Natasha
Gurfinkel Kagalovsky.
write
to David Irving