In the London court started the court in the case in which the plaintiff is the Libyan investment authority LIA, and the defendant is the financial giant JPMorgan. Allegedly, a subsidiary of JPMorgan paid a bribe of $ 6 million to conclude a deal for $ 200 million.
One of the largest investment banks and financial markets players in the world, Bear Stearns, which belongs to the giant JPMorgan Chase, transferred funds to businessman Walid al-Jiami, a supporter of the Gaddafi regime, for a contract transaction agreement, which was nothing more than a “false” agreement, according to documents submitted to the London court. The Bank must submit the protective documents on this case, which was filed in April, before the next month. The representative declined to comment, Crainsnewyork reports.
The LIA office, established under Muammar Gaddafi, presents a number of claims to large banks seeking to nullify unprofitable transactions that could be affected by bribes. Societe Generale SA has already paid more than $ 1.7 billion for the claims that the Bank has paid al-Jiami for the organization of transactions.
Libyans say that al-Jiami may have acted “in the same way” on five transactions involving other creditors. Al-Jiami had personal ties to the family and the Gaddafi regime, including Gaddafi’s son Saif al-Islam.
Bear Stearns has attracted $ 200 million for LIA after in 2007 an agreement was signed an agreement with al-Giami. However, neither al-Jiami nor his firm Lands Company Ltd. “did not provide any legal services to Bear Stearns,” according to the LIA complaint.
Instead, al-Giami bribed and intimidated the Executive Director of the Foundation Mustafa Zarti, other managers, LIA and head of alternative investment team for the conclusion of agreements on the sale of bonds, according to LIA.
Bear Stearns, which JPMorgan bought in the midst of the financial crisis in 2008, did not need the structuring services allegedly provided by al-Jiami, LIA reports. While Bear Stearns International made a number of payments prior to the acquisition, JPMorgan Chase Bank paid the remaining tranche of $ 2 million in 2009, according to the lawsuit.
The lender “knew or at least suspected that the Lands Company payments were fraudulent and corrupt,” the Fund said.