The latest money laundering techniques
The Bank of New York on Friday fired Lucy Edwards, one of two executives suspended amid allegations that Russian mobsters had used accounts at the bank in a major money laundering operation. Ms. Edwards was in charge of the bank_s Eastern European operations in London. She was suspended Aug. 18, and her home and office were searched by authorities three days later. A spokesman for the Bank of New York said Edwards was dismissed on Friday. She would not elaborate on the bank_s decision, but Dow Jones Newswires reported that the bank suspected her of misconduct and falsifying records. A second executive suspended by the bank, Natasha Kagalovsky, has denied wrongdoing. Edwards could not be reached for comment, and has not been charged with any crime. In an ironic twist to the case, Edwards made a presentation on the latest money laundering techniques at a conference for financial executives in Riga, Latvia, in June. Her speech was entitled "Money Laundering: Latest Developments and Regulations." Money laundering is the process of moving ill-gotten gains through a series of bank accounts until they appear like legitimate profits from legal businesses. Investigators suspect that billions of dollars were moved through accounts at the Bank of New York, partly through a company called Benex Worldwide Ltd. Edwards_ husband, Russian businessman Peter Berlin, is listed as a director of Benex. Investigators believe the total amount funneled through the bank may exceed $10 billion, reports have said. A spokesman for the Federal Bureau of Investigations declined to comment. A call to the U.S. Attorney_s office in New York, which is believed to be investigating the matter, was not returned. The other Bank of New York official suspended pending the investigation, Kagalovsky, is a senior vice president in New York who also supervised the bank_s business in Eastern Europe.