Qld: Citibank returns laundered funds

AAP General News (Australia)
12-27-2000
Qld: Citibank returns laundered funds

The Sydney-based affiliate of Citibank has returned $A14 million in allegedly laundered
funds to the FBI as part of a US investigation into credit card fraud.

Californian resident KENNETH TAVES is being investigated for allegedly defrauding as
many as 900,000 credit card holders of $A81 million by improperly billing credit card
numbers for access to his adult website.

TAVES is alleged to have purchased the card numbers from a bank in the San Fernando
Valley, near Los Angeles.

Quoting US Government officials, The Los Angeles Times has reported that some of the
proceeds were initially hidden in the Cayman Islands but after investigators accused TAVES
of fraud the funds were wired to the Vanuatu-based European Bank.

Officials say the European Bank deposited the funds in the Sydney affiliate of Citibank,
which sent the money to New York to be handed over to the FBI.

The US Federal Trade Commission has found TAVES liable for falsely billing card holders
for access to his adult website.

TAVES denies any wrongdoing and is expected to be indicted for the alleged fraud in
several weeks.

AAP RTV dp/cjh/de/jx/evt

KEYWORD: CITIBANK (GOLD COAST)

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