Former Paribas bankers plead guiltyin US grand larceny case

11th August 2004, Comments 0 comments

NEW YORK, Aug 11 (AFP) - Two former bankers for France's BNP Paribas pleaded guilty Wednesday to attempted grand larceny, stemming from the theft of more than USD 12 million in distressed debt and cash from their employer.

NEW YORK, Aug 11 (AFP) - Two former bankers for France's BNP Paribas pleaded guilty Wednesday to attempted grand larceny, stemming from the theft of more than USD 12 million in distressed debt and cash from their employer.  

Edward Canale and Michael Connolly, two senior officials in the bank's New York office, entered their pleas before State Supreme Court Judge Michael Ambrecht.  

Under the plea deal, Canale faces a prison sentence of between two and six years, while Connolly will get between 18 months and four-and-a-half years, Manhattan District Attorney Robert Morgenthau said.  

A joint investigation by Morgenthau's office and the Federal Reserve Bank of New York, revealed massive fraud and theft from BNP Paribas which the defendants accomplished by diverting assets from the bank's Distressed Investing Portfolio into two shell companies they created.  

They also diverted payouts and equity conversions due BNP Paribas from troubled companies that were being restructured and had not yet been put on the bank's books.   The theft occurred between June 2001 and February 2004.  

Morgenthau said Canale and Connolly had cooperated with the investigation and had returned approximately USD 8 million to the bank.

© AFP

 

Subject: French news

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