A senior federal prosecutor in West Virginia prepared an offended plea to his executives in Washington to settle conflict as multiple government agencies follow the high-stakes investigation of HSBC Holdings Plc in the second half of 2010. In Brooklyn and Washington, William Ihlenfeld II had been resisting a losing battle versus his fellow prosecutors who were similarly controlled a parallel probe within the British bank’s control beyond illegal transactions.
There have been a failure in the relationship and his office had been ordered to stand down on June 2010 by the Department of Justice, as they were planning to charge the bank for more than 175 counts due to money laundering, said by Ihlenfeld, the Wheeling, West Virginia’s U.S. Attorney. He added that the first negotiation was unsuccessful, so they were searching for an agreement for the argument for the first time over 30 years.
They have created some offers to willingly solve the argument by separating the investigation through some way that secure the two investigations that will never intervene with each other. But through their effort, all of their suggestions were failed, none of their proposals have even considered a counter offer. In other words, there is no sense why the professionals from various DOJ boards cannot work consistently for the similar preference.
This exact situation is no exclusion, this is based on Ihlenfeld letter sent to the acting deputy attorney general, Gary Grindler. It is not sure if Ihlenfeld originally sent the letter or the Department of Justice settled to reconcile the argument, however the outline supports an exceptional insight into the hidden world of prosecutors and casts a new content on a large and composite U.S. investigation that some two years later may move to a settlement of over $1 billion with HSBC.
Relatively 11 different U.S. departments, regulators and offices were generally composed of the two opposing groups including the U.S. Senate have investigated HSBC for money laundering failure in investigations in 2007. Other Department of Justice records, regulatory filings and interviews and even Ihlenfeld letter with those close to the HSBC prosecutors clarify how diverse and sometimes overrun queries have delayed the prosecution and increased the expenses, moreover prevailed to rancor in the department and within various government agencies.
From minor fraud through the laundering of tens of billions of dollars for drug factories and other regions that are the issue of U.S. sanctions like Iran, they also underline the concerns that the government faces in organizing global banks like the HSBC that can allow a wide range of illegal transactions. The struggle within various government agencies has emerged in other complicated investigations.
Since December 2008, prosecutors in Ihlenfeld’s office had been investigating the case that originated with an investigation of a local doctor’s utilizing the HSBC accounts to carry out $3 million tied to Medicare fraud. Prosecutors in West Virginia were working in two units of the Treasury Department, the Financial Crimes Enforcement Network and the Internal Revenue Service’s Criminal Investigation arm that urges anti-money laundering laws. After more than five years of investigation for HSBC, a final decision may be coming, said in a regulatory filing in July, the bank has already set aside the $700 million to hide those costs.
REFERENCES:
http://profit.ndtv.com/news/corporates/article-us-probe-on-illicit-transactions-by-hsbc-tangled-up-in-bureaucracy-infighting-311310
http://news.silobreaker.com/us-probe-on-illicit-transactions-by-hsbc-tangled-up-in-bureaucracy-infighting-5_2266001635224322108
http://www.amlabc.com/aml-category/aml-news/u-s-probe-of-hsbc-tangled-up-in-bureaucracy-infighting/
http://thelastchanceoffreedom.blogspot.com/2012/09/us-probe-of-hsbc-tangled-up-in.html
