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Florida. This was to be a retirement home for petitioner's son and
his wife, as well as for petitioner, if she were still living.
5. Seizure of BCCI's World-Wide Assets
Early on in BCCI's existence it began to experience
substantial losses due to improper banking practices, including
illicit activities conducted by BCCI employees and customers. For
many years, BCCI was able to keep the nature and extent of these
losses hidden. However by 1991, BCCI's losses had become the
subject of scrutiny by bank supervisors in several countries.
On June 6, 1990, the Federal Reserve Board received from the
Bank of England a Price Waterhouse audit report for BCCI,
indicating a nominee relationship between CCAH and BCCI. The Price
Waterhouse audit report found that there were approximately $1.7
billion in outstanding, nonperforming loans from BCCI to eight CCAH
shareholders secured by CCAH stock.
On June 11, 1990, BCCI sent a letter to the Federal Reserve
Board stating that it intended to close all U.S. BCCI offices
except New York. On June 12, 1990, the New York Reserve Bank
suggested that BCCI cease all operations in the United States. On
July 11, 1990, BCCI was instructed not to shift any assets to the
New York agency.
On July 5, 1991, BCCI's worldwide assets, including those of
the IOMB of BCCI, S.A., were seized. The Luxembourg Monetary
Institute took control of the assets of BCCI, S.A., while the
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