Friday, October 30, 2020

Four More Banks Named in Deutsche Bank Bribery Lawsuit in London


The middleman who confessed to paying bribes over trades he helped arrange between Deutsche Bank AG and a Dutch housing firm said he was also getting commission payments from other major lenders, including Barclays Plc, Citigroup Inc., Societe Generale SA and BNP Paribas SA.

Arjan Greeven — who’s at the center of a London lawsuit that turns on what Deutsche Bank knew about the bribes — said the other firms would also pay commissions to his company on trades they carried out for Stichting Vestia.

Until 2010, he paid Marcel De Vries, Vestia’s treasury and control manager, a share of those fees “on all Vestia trades with all of the banks where I was involved in the Vestia/bank relationship,” he said in filings. Greeven and De Vries — who was in charge of Vestia’s derivatives trading — were convicted of bribery in the Netherlands last year. Both are appealing.

Deutsche Bank said it knew nothing about Greeven and De Vries’ “secret arrangements” and that Greeven’s firm, First in Finance Alternatives, seemed to be a legitimate intermediary. Citigroup, Barclays, Societe Generale and BNP Paribas declined to comment. Those banks aren’t accused of knowing that Greeven’s company was passing on fees to De Vries.

- Advertisement -

The case sheds light on the use of intermediaries in the years before the U.K. introduced tougher anti-bribery rules in 2011. Greeven’s company was paid fees by as many as six other lenders over derivative trades with Vestia, and he even complained that other banks paid him higher fees, Deutsche Bank said in its filings for the lawsuit.

Vestia almost collapsed after losing more than 2 billion euros ($2.2 billion) on derivatives trades that soured, of which it says a “substantial part” came from trading with Deutsche Bank. It’s suing in a bid to recoup some of the money, saying some of those derivatives transactions were “flawed” because of the bribes. The other banks aren’t parties to the case.

“Vestia’s allegations are without basis and we deny them in the strongest terms,” a Deutsche Bank spokeswoman said.


- Advertisement -

Deutsche Bank paid 3.5 million euros in fees to Greeven’s firm, known as FIFA, Vestia said. Greeven would pay half of his gross earnings on trades between Vestia and Deutsche Bank to De Vries, and De Vries would call Greeven to ask how much commission he’d made.

“He did the same thing so far as concerned the other banks that we were dealing with,” which included Citi, Barclays and Societe Generale and BNP Paribas, Greeven said.

The alleged involvement of other banks is important to Deutsche Bank’s argument in the case. Its own fees “were in line with, if not below, market rates,” it said.

“There was nothing suspicious about Mr. De Vries wanting FIFA to be involved in Vestia’s dealings” with the bank, it said in filings, and “FIFA outwardly appeared to be a legitimate and reputable business.” The bank paid fees to FIFA on a transaction-by-transaction basis, it said.

Greeven approached prosecutors in 2012 to tell them about his involvement in Vestia’s trades, after he saw a press report on Vestia’s financial strain because of its derivatives. That led to the arrest of De Vries, he said. He stopped paying De Vries because with the coming new U.K. bribery legislation, “various banks that I was dealing with were starting to talk to me about anti-bribery issues.”


Actress Lori Loughlin begins 2-month prison sentence for role in college admissions scam

Actress Lori Loughlin reported to a federal prison in Northern California on Friday to start a two-month sentence for her role in a massive...

FirstEnergy fires CEO, other executives over Ohio bribery scandal

FirstEnergy Corp. has fired its CEO amid multiple federal investigations related to an Ohio nuclear bailout law passed year. The Akron-based utility company announced in a...

Ukraine’s court strips critical power from anti-corruption agency

Ukraine's Constitutional Court has stripped the country’s anti-corruption agency of some of its critical powers. The high court’s ruling published on October 28 declared it...

Former South Korean President Lee Myung-bak sent back to prison for 17 years in corruption case

Former South Korean president Lee Myung-bak was ordered back to prison on Thursday (Oct 29) as the country's Supreme Court upheld a 17-year jail...

Nigerian court declines to issue international arrest warrant for fugitive ex-Petroleum Minister in corruption case

The Abuja Division of the Federal High Court, on Wednesday, refused an application by the Economic and Financial Crimes Commission, EFCC, for an arrest...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Nigerian court declines to issue international arrest warrant for fugitive ex-Petroleum Minister in corruption case

The Abuja Division of the Federal High Court, on Wednesday, refused an application by the Economic and Financial Crimes Commission, EFCC, for an arrest...

Namibia probes oil firm Acer petroleum over bribes paid to government officials

THE mines and energy ministry says it is investigating allegations that an oil company bribed some senior officials to fast-track licence applications. The senior officials...

Former solicitors used 60 fake identities, homeless people to defraud banks

A married couple who are former solicitors created 60 false identities, donned disguises and paid homeless people for their PPS numbers in order to...

Former DEA spokesman sentenced to 7 years for posing as CIA agent to scam $4 million

A former spokesman for the Drug Enforcement Administration (DEA) was sentenced to 7 years in prison Wednesday for posing as a CIA agent on...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks