Key Dates in case of BCCI, Clark Clifford With PM-BCCI-Clifford
Undated (AP) _ Key dates in the involvement of Clark Clifford and Robert Altman in the Bank of Credit and Commerce International scandal. Based on Federal Reserve documents, state court records and Associated Press reports.
BCCI starts planning a takeover bid for Financial General Bankshares of Washington, later renamed First American Bankshares. BCCI hires Clifford’s law firm, Clifford and Warnke, to handle takeover litigation.
April 23: Federal Reserve Board hearing with Clifford, Altman and four Arab investors representing Credit and Commerce American Holdings (CCAH), a holding company based in the Netherlands Antilles. The investors are later identified as BCCI fronts.
Clifford assures regulators the investors were putting up their own money and that First American would be operated separately from BCCI.
Aug. 25: Fed approves the CCAH bid to take over Financial General Bankshares. Later, Clifford and Altman, attorneys for BCCI founder Agha Hasan Abedi, become chairman and president of First American. The takeover was consummated the following year.
September: Sheik Khalid bin Mahfouz, a BCCI director later indicted in the case, tours First American offices in New York and Washington and discusses First American business with Clifford and Altman.
Clifford and Altman sell shares in CCAH. After repaying loan to BCCI and paying taxes, Clifford made $2.75 million and Altman $1.35 million on the deal.
May: An article detailing BCCI’s ownership in First American is published by the magazine Regardies, The Business of Washington. Article alleges Clifford and Altman knew about BCCI’s secret role all along.
Jan. 4: Fed begins formal probe of BCCI-First American links.
March 4: On order of the Fed, BCCI agrees to give up its secret investment in First American Bankshares.
June 26: Clifford testifies before a federal grand jury he didn’t know of BCCI’s hidden stock ownership of First American.
July 5: Regulators in 62 countries shut down BCCI operations.
July 29: In New York, Manhattan District Attorney Robert Morgenthau unveils a sweeping BCCI indictment, alleging the bank and top executives defrauded investors, falsified records and stole some $30 million. The Fed announces it is seeking a $200 million fine against BCCI and an order barring nine people tied to it from involvement with U.S. banking.
Aug. 13: Pressured by regulators, Clifford and Altman step down as chairman and president of First American.
Sept. 11: Clifford and Altman appear before House Banking Committee and deny knowledge of BCCI’s acquisition of First American. They are sharply criticized by panel.
Sept. 27: House Banking Committee releases documents showing BCCI and First American shared customers and cooperated in banking transactions.
Oct. 24: Clifford and Altman again defend their record in testimony before a Senate panel.
Dec. 19: BCCI pleads guilty to state and federal racketeering charges and agrees to forfeit $550 million, the largest criminal forfeiture in U.S. history.
July 1: Morgenthau announces indictment of Sheik Khalid, top executive at National Commercial Bank of Saudi Arabia, and an associate on charges of defrauding BCCI depositors of $300 million. Fed later seeks $170 million fine against Mahfouz for his role in First American takeover and says he discussed First American business with Clifford and Altman during a 1986 New York visit.
July 29: Morgenthau announces that Clifford, Altman and others have been indicted for their dealings with BCCI.