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Ex-banker, husband get probation in laundering case

July 26, 2006

NEW YORK (Reuters) – A former Bank of New York Co. vice
president and her husband were sentenced on Wednesday to six
months home confinement after admitting to involvement in a $7
billion Russian money-laundering conspiracy, a spokeswoman for
the U.S. Attorney in Manhattan said.

Lucy Edwards, a former vice president in the bank’s Eastern
European division, and her husband Peter Berlin had pleaded
guilty to conspiring to help move laundered funds through
accounts at the bank.

They also pleaded guilty to helping two Russian banks
conduct illegal activities in the United States.

U.S. District Judge Shirley Wohl Kram pronounced the
sentence, which also includes five years probation, the
spokeswoman said. The couple were also ordered to pay $685,000
in restitution to the Internal Revenue Service, and each pay a
$20,000 fine.

Bank of New York last November agreed to pay $38 million to
resolve a long-running federal probe into the conspiracy.

Prosecutors said the bank agreed to pay $26 million to the
government and $12 million to banks that lost money because of
its misconduct. The bank also agreed to other reforms.

The Bank of New York was founded in 1784 by Alexander
Hamilton, and is the oldest U.S. bank.


Source: reuters



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