FOR IMMEDIATE RELEASE CRM
FRIDAY, SEPTEMBER 1, 1995 (202) 514-2008
TDD (202) 514-1888
FEDERAL COURT RELEASES $393 MILLION
FOR BCCI VICTIMS
WASHINGTON, D.C. -- The Department of Justice today
announced that U.S. District Judge Joyce Hens Green has issued an
order turning over more than $393 million seized from the Bank of
Credit and Commerce International (BCCI) to help reimburse its
embezzled victims.
The order marks the first time that the funds forfeited in
1992 are being made available to the government and the worldwide
victims' fund under a plea agreement by the bank in 1991.
Under that agreement, $223 million, plus accrued interest
will go directly to the victims' fund. Another $10 million will
go to the State of New York in payment of the fines assessed by
New York against BCCI. The balance will remain available to the
Attorney General to be used to offset the losses suffered by the
Federal Deposit Insurance Corporation (FDIC) insurance fund as a
result of BCCI's criminal activities, and for other purposes.
Disbursement of the forfeited funds has been held up since
1992 by a series of challenges to the court's forfeiture order
filed by third parties. Recently the Supreme Court rejected the
largest of those challenges, making it possible for the $39
million to be released.
Additional funds, totaling several hundred million dollars,
are still being held by the court pending the resolution of
additional third party claims.
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95-465