After Allfirst Bank discovered a massive, $691 million fraud by foreign exchange trader John Rusnak back in 2002, Allfirst’s parent company, Allied Irish Banks plc, went after financial institutions that allegedly furthered Rusnak’s deception. Now, more than a dozen years later, Citibank NA will face a potential trial in Manhattan on claims that it aided in the trading fraud.
U.S. District Judge Deborah Batts on Tuesday refused to allow Citibank to escape fraudulent concealment and aiding and abetting claims related to Rusnak’s scheme. The judge did, however, agree to dismiss unjust enrichment and “money had and received” claims against Citibank, which is represented by Cleary Gottlieb Steen & Hamilton.
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