BNY Mellon's Ouster as Fiduciary Sought by Mercers After Bank Admitted Fraudulent Conduct Against its Own Customers
Mercers claim bank's admissions make it ineligible to serve as estate fiduciary
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: [email protected]
(631) 547-0300
SOURCE Novick & Associates, P.C., Attorneys for Mercer Sons
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