Russia Reform Monitor No. 938, June 12, 2002
American Foreign Policy Council, Washington, DC
June 12:
MONEY LAUNDERING WEB EXPOSED. A wave of recent arrests is the product of the U.S. government's continuing investigation into the 1999 money laundering scandal involving the Benex Corporation and the Bank of New York, the New York Times reports. The arrests of 50 people, half of them Russians, in raids in Italy, Monte Carlo and France were made public on June 12th. Sizeable assets have also been seized and 300 bank accounts have been frozen to date. According to the paper, the arrests appeared to confirm concerns "that large-scale laundering of money obtained illegally in Russia continues through seemingly legitimate businesses." The profits being laundered derive from prostitution, drug sales, tax evasion and protection rackets.
Note that Natasha Kagalovsky of Bank of New York was defended by Lily's attorney Stanley Cohen.