Banks Fails To Conduct Due Diligence On Fraudulent Customer

ByJohn Lomicky

|

Updated onApril 11, 2019

This case involves plaintiffs who sought to recover damages allegedly caused by a correspondent bank’s failure to act in response to a multi-billion dollar fraud. Its customer, an international banking company, sold certificates of deposit to individuals. Funds were illegally diverted and used to fund the lifestyles of top executives. It was alleged that the correspondent bank did not conduct appropriate anti-money laundering due diligence for nearly 10 years. An expert in correspondent banking was sought to opine on the standards of a reasonable bank, namely the circumstances in which due diligence would be applied.

Question(s) For Expert Witness

1. Please describe your experience in correspondent banking.

2. In what circumstances would you flag your colleagues regarding an account?

3. What are your responsibilities evaluating/knowing a client's financial statements or promised rates of returns?

Expert Witness Response E-202800

inline imageIn 1973, I began working at the largest international bank in Canada where I held many different positions for 30+ years. In 1991, I became senior manager of financial institutions and worked my way up to vice president of global transaction banking until I became a consultant in 2008. I've dealt with client relations, management, correspondent banking services, operations, compliance, AML, and risk management along with many other facets. I managed both teams on a global scale. I would be able to speak about client relationships, when red flags should go off for correspondent banking directors, and when AML is brought in to assess a situation.

About the author

John Lomicky

John Lomicky

John Lomicky is a J.D. candidate at FSU Law with a multidisciplinary background. He earned his Bachelor's degree in Neurobiology and Near Eastern Studies from Georgetown University and has graduate degrees in International Business and Eurasian Studies. John's professional experience includes working in private equity as an Associate at Kingfish Group and in legal business development and research roles at the Expert Institute. His expertise spans managing sales teams, company expansion, and providing consultative services to legal practices in various fields.

Find an expert witness near you

What State is your case in?

What party are you representing?