The Supreme Court of New York has dismissed the 2020 civil complaint by Bangladesh Bank against Manila Bay-based Solaire Resort & Casino operator Bloomberry Resorts Corp for “lack of jurisdiction.”
The complaint was filed in connection to the Bangladesh central bank’s long-running efforts to recover part of the $81 million stolen by hackers in 2016.
Bloomberry’s subsidiary, Bloomberry Resorts and Hotels Inc and Yuchengo-led Rizal Commercial Banking Corp (RCBC), were among the defendants named in the complaint filed two years ago, Philippine Daily Inquirer reported on Tuesday.
On February 5, 2016, hackers stole $101 million from the Bangladesh Bank’s account with the Federal Reserve Bank of New York using fake orders through the SWIFT payment system.
Of the amount, $81 million was transferred to four accounts with RCBC in Manila of the Philippines, while another $20 million to a bank in Sri Lanka.
The $81 million 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.
However, the transfer of 20 million dollars to Sri Lanka failed due to a spelling error made by the hackers.
Later, the BB was able to retrieve about $15 million from the Philippines.
In the New York lawsuit, 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, owned by Billionaire Enrique Razon Jr, on April 11 told the Philippine Stock Exchange (PSE) that the Supreme Court of New York had dismissed the complaint on April 8 due to 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 Bangladesh Bank appealed the decision with the US Court of Appeals, which was later withdrawn, Bloomberry said in its 2021 annual report, the report also mentioned.
Talking to The Business Post, Bangladesh Bank Executive Director and Spokesperson Serajul Islam said, “We are aware that the lawsuit filed by Bangladesh Bank has been dismissed in the court of New York. We will decide the next course of action once our legal counsel obtains a full copy of the verdict.”
Soon after the incident, the Philippine central bank – Bangko Sentral ng Pilipinas – slapped a record P1 billion fine against RCBC after a special investigation was completed.
The following year, Philippine President Duterte signed a new law arming the Anti-Money Laundering Council with greater powers and included casinos in its coverage.
