HUNTINGTON, N.Y., April 1, 2015 /PRNewswire/ -- In papers filed in
Suffolk County Surrogate's Court, David and
Howard Mercer, the sons of famed E. Hampton sculptor
Norman Mercer, have asked the Court
to remove BNY Mellon as a fiduciary of their father's estate
because of the bank's admission of fraudulent conduct directed at
its clients.
In a March 19, 2015 Stipulation
and Order of Settlement resolving long-running litigation between
the bank, federal and state regulatory agencies and a class action
lawsuit filed by its clients, BNY Mellon admitted to the facts in
the complaint alleging civil fraud. The bank agreed to pay
$714 million to settle accusations
that it systemically defrauded its customers over an eleven-year
period. BNYM "admitted the factual details of its fraud"
according to New York's attorney
general and the U.S. Attorney's office in Manhattan.
"The Bank, after three years of litigation, has finally admitted
what was always clear from the evidence – contrary to its various
representations, including a claim of 'best rates,' the bank in
fact gave clients prices at or near the worst interbank rates
reported during the trading day. The bank repeatedly deceived its
customers" said Preet Bharara, Manhattan U.S.
Attorney.
Ironically, one of the publically identified victims of the
bank's scheme is Duke University.
Gerald Hassell, BNYM's Chairman and
CEO, is not only a Duke alumnus, but
also serves as a Trustee and head of the university's audit
committee. In a May 2013 interview
Hassell claimed, "We (also) contribute to the health of global
markets and earn our clients' trust every day by upholding the
highest standards of ethics and integrity in our practices and
products."
Under New York law, a person or
entity that engages in acts of dishonesty is prohibited from
serving as an estate or trust fiduciary. The Mercers allege not
only that the bank has engaged in a top-down pattern of dishonesty,
but also that trusts established by their father for their benefit,
and administered by the bank, may have been victims of BNYM's
latest misconduct.
This is the most recent action taken by David and Howard Mercer to hold BNY Mellon
accountable for the alleged wrongdoing and mismanagement of their
father's estate.
Contact:
Donald Novick, Novick &
Associates P.C.
Email: dnovick@novicklawgroup.com
(631) 547-0300
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visit:http://www.prnewswire.com/news-releases/bny-mellons-ouster-as-fiduciary-sought-by-mercers-after-bank-admitted-fraudulent-conduct-against-its-own-customers-300059543.html
SOURCE Novick & Associates, P.C., Attorneys for Mercer
Sons