Qld: Citibank returns laundered funds

AAP General News (Australia)
12-27-2000
Qld: Citibank returns laundered funds

By Dale Paget

GOLD COAST, Qld, Dec 27 AAP - The Sydney-based affiliate of Citibank has returned $US8.1
million ($A14.58 million) in allegedly laundered funds to the FBI as part of a US investigation
into a $US45 million ($A81 million) credit card fraud involving a Californian Internet
entrepreneur.

Kenneth H Taves, of Malibu, is being investigated for allegedly defrauding as many
as 900,000 credit card holders by improperly billing credit card numbers for access to
his adult website.

Taves is alleged to have purchased the card numbers from a bank in the San Fernando
Valley, near Los Angeles.

Quoting US Government officials, The Los Angeles Times reported that some of the proceeds
were initially hidden in the Cayman Islands but after investigators accused Taves of fraud
the funds were wired to the Vanuatu based, European Bank.

Officials say the European Bank deposited the funds in the Sydney affiliate of Citibank
which sent the money to New York to be handed over to the FBI.

A spokesperson for Citibank in Sydney was unable to comment on the story today because
appropriate staff were on holiday.

The US Federal Trade Commission has found Taves liable for falsely billing card holders
for access to his adult website. Taves is expected to be indicted for the alleged fraud
in several weeks.

The Los Angeles Times reports that Taves has denied the charges, claiming computer
users entered stolen credit card numbers to gain access to his adult website.

AAP dp/cjh/de

KEYWORD: CITIBANK

2000 AAP Information Services Pty Limited (AAP) or its Licensors.