Sunday, January 18, 2009

NY state gets $109m, part of Lloyd's Bank Tungsten case

NEW YORK - Manhattan's chief prosecutor has presented New York's governor with a check for $109 million _ the state's share of a settlement paid by Lloyd's TSB Bank of London for transferring money from Iran and Sudan through New York City.

Gov. David Paterson and District Attorney Robert Morgenthau said Friday they believe Iran planned to use the money to buy tungsten from China. Tungsten is used in the development of long-range missiles.

Morgenthau said an investigation by his office prompted a federal case.

In all, Lloyds TSB Bank has agreed to forfeit $350 million for helping customers skirt U.S. sanctions on business transactions with Sudan and Iran.

The bank has admitted responsibility for criminal conduct based on documents filed in U.S. District Court for the District of Columbia.

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