U.S. Justice Department Seeks Largest-ever Laundering Penalties in Suits Against Lloyds TSB, Bank of Cyprus

By Brian Orsak

CORRECTION APPENDED The U.S. Justice Department is seeking nearly $300 million in civil money laundering penalties from Lloyds TSB Bank PLC and Bank of Cyprus, charging that the two foreign-based institutions helped to launder the proceeds of a massive securities fraud. The two banks helped an international fugitive living in Cyprus launder millions of dollars from an insider-trading scheme involving shares of software company AremisSoft, prosecutors said in a complaint filed Monday in federal district court in New York. The U.S. is seeking $130 million from London-based Lloyds TSB and $162 million from Bank of Cyprus, making the cases the...