AHAB Wins New York Appeal in Al Sanea Bank Fraud Case

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• Publié par: kearsarge-global-advisors
• Nombre de lectures: 12
• Langue: English

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AHAB Wins New York Appeal in Al Sanea Bank Fraud Case

PR Newswire WASHINGTON, Sept. 25, 2012

- Court Cites Importance of U.S. Jurisdiction Over Banking System WASHINGTON, Sept. 25, 2012 /PRNewswire/ -- Today the Appellate Division of the Supreme Court ofNew Yorkreversed a decision in a dispute involving Ahmad Hamad Algosaibi & Brothers Company (AHAB), Maan Al Sanea, and Mashreq Bank.Mashreq sued AHAB in 2009 over a$150 millionuncompleted foreign exchange transaction.AHAB brought a third party claim against Maan Al Sanea, asserting the funds to complete the transaction had been stolen by him from AHAB'sNew Yorkbank account, and counterclaimed against Mashreq for knowingly assisting Al Sanea's Ponzi scheme. The previous ruling dismissed the case on grounds of "forum non conveniens," suggesting that the dispute should be tried inSaudi Arabiaor elsewhere in the Middle East.In the court's majority opinion issued today, the Honorable James M. Catterson writes, "New Yorkhas a compelling interest in adjudicating controversies that implicate its preeminent position in the international banking system, and in any event, [Maan Al Sanea] failed to demonstrateNew Yorkis an inconvenient forum." "We are pleased that the appellate court has recognized the critical role ofNew Yorkcourts in massive international frauds that use the U.S. banking system.In today's world, frauds can involve numerous countries, none of which may have the resources or critical involvement to investigate.The U.S. financial system must be a backstop against fraud," said Eric Lewis, AHAB's chief legal coordinator. "Foreignparties should not be allowed to useNew Yorkbanks to perpetuate massive financial frauds, and escape scrutiny simply by engineering the wrongdoing from outside the country." Although Mr. Al Sanea has repeatedly issued public statements rejecting AHAB's charges, to date he has declined to submit any defense to AHAB's claims in court. OnJune 13, 2012, the Grand Court of theCayman Islandsissued an interim payment order today in favor of Ahmad Hamad Algosaibi & Brothers (AHAB) against Maan Al-Sanea in the amount of$2.5 billion. The interim payment order reflects the Cayman Court's prediction that AHAB will be entitled to recoverat least$2.5 billionfrom Al Sanea, and AHAB has indicated that they will undertake final quantification at the end of the case on the full$9.2 billion claim.