Austrian Bank Forfeits $337.5 Million to U.S. to Avoid Prosecution in Refco Fraud Case

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Tuesday, August 1, 2006
Author: 
Bruce Zagaris
Volume: 
22
Issue: 
8
302
Abstract: 
On June 5, 2006, Michael J. Garcia, the U.S. Attorney for the Southern District of New York, announced that BAWAG P.S.K., formally known as Bank Für Arbeit Under Wirtschaft Und Österreichische Postparkasse Aktiengesellschaft, and the Austrian Trade Association, formally known as Österreichischer Gewerkschaftsbund (ÖGB), which owns BAWAG, have agreed to forfeit $337.5 million to the United States. The forfeited money will be distributed to victims of the fraud at Refco, Inc., as part of a settlement agreement under which the U.S. Attorney’s Office will not prosecute BAWAG or the ÖGB.