Billionaire Enrique Razon Jr.’s Bloomberry Resorts Corp., operator of the Solaire Resort & Casino along Manila Bay, said the Supreme Court of New York had dismissed the 2020 civil complaint of Bangladesh Bank for “lack of jurisdiction.”
This was connected to the Bangladesh central bank’s long-running efforts to recover part of the $81 million stolen by hackers in 2016.
The funds flowed through the Philippine financial system before disappearing in local casinos, where they were used to buy gaming chips that were played in junket rooms.
Bloomberry’s subsidiary, Bloomberry Resorts and Hotels Inc. and Yuchengo-led Rizal Commercial Banking Corp. (RCBC), were among defendants named in the complaint filed two years ago.
Bangladesh Bank accused at least 20 defendants of “conversion/theft/ misappropriation; aiding and abetting the same; conspiracy to commit the same; fraud (against RCBC); aiding and abetting and conspiracy to commit fraud; conspiracy to commit trespass against chattels; unjust enrichment; and return of money received.”
Bloomberry told the Philippine Stock Exchange (PSE) on Monday that the Supreme Court of New York had dismissed the complaint on April 8 for lack of jurisdiction.
Bangladesh Bank lost an earlier case in New York in March 2020 before filing this latest suit. Bangladesh Bank appealed the decision with the US Court of Appeals, which was later withdrawn, Bloomberry said in its 2021 annual report.
Some of the funds stolen from Bangladesh Bank were cleared by correspondent banks in New York before being wired to fictitious accounts with RCBC. The money was withdrawn and later disappeared.
The embarrassing incident prompted the Bangko Sentral ng Pilipinas to slap RCBC with a record P1 billion fine in 2016 after a special investigation was completed.
The following year, President Duterte signed a new law arming the Anti-Money Laundering Council with greater powers and included casinos in its coverage. INQ