Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Clifford to be charged over his BCCI role

Larry Black,Paul Durman
Tuesday 28 July 1992 18:02 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

CLARK CLIFFORD, the veteran Washington insider employed by the Bank of Credit and Commerce International to win control of a leading US bank, is to be charged tomorrow over his role in the international banking scandal, sources close to New York prosecutors said.

Mr Clifford and his law partner, Robert Altman, will be charged with lying to US bank regulators about the ownership of First American Bancshares, the Washington-based bank they ran during much of the 1980s. Despite their representations to the contrary, First American was in fact controlled by BCCI, the Gulf bank that collapsed last July amid evidence of fraud, bribery and money-laundering.

Mr Clifford, First American's former chairman, and Mr Altman, its president, will be charged by Robert Morgenthau, the Manhattan district attorney who led the initial investigation of BCCI last summer, prompting claims that American and British authorities and regulators had dragged their heels. In the US, BCCI has settled with Mr Morgenthau's office, pleading guilty to criminal charges and disgorging dollars 550m (pounds 290m).

A source close to Mr Morgenthau's investigation said yesterday that other indictments could be expected soon, including several against executives of a large American bank that similarly helped to bolster BCCI's reputation in the US.

In testimony before a congressional committee last autumn, Mr Clifford and Mr Altman claimed they were unaware of BCCI's role in First American, and no evidence has emerged to prove their complicity in the takeover. But both served as BCCI lawyers in Washington during their tenure and accepted loans from BCCI to buy First American shares, the sale of which resulted in a personal profit of dollars 10m.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in