BNY Mellon Must Face N.Y. Fraud Case on Currency Trades

Bank of New York Mellon Corp. must face a lawsuit by the New York Attorney General that accuses the world’s largest custody bank of defrauding clients in foreign-exchange transactions.

Justice Marcy Friedman of New York state Supreme Court in in Manhattan ruled fraud claims brought by the state Attorney General Eric Schneiderman can proceed, according to a decision dated yesterday.

BNY Mellon was sued in 2011 by Schneiderman, who accused the bank of a 10-year fraud through the pricing of foreign-exchange transactions for private and government clients. Manhattan U.S. Attorney Preet Bharara also has a lawsuit pending against the bank over the same issue.

BNY Mellon spokesman Kevin Heine didn’t immediately comment by e-mail on the judge’s decision.

The case is People of the State of New York v. Bank of New York Mellon Corp., 114735-2009, New York state Supreme Court (Manhattan).

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net

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