-Caveat Lector-

$1.16B Awarded to BCCI Liquidators

WASHINGTON (AP) - A federal judge has ordered a retired Saudi government
official to pay $1.16 billion in damages to the court-appointed liquidators
of BCCI, a now-defunct foreign bank that was at the center of an
international scandal.

U.S. District Judge Joyce Hens Green ruled that Abdul Raouf Hasan Khalil, a
Saudi businessman who was believed to be the biggest depositor in the Bank of
Credit and Commerce International, conspired with bank officials in a
fraudulent scheme that resulted in big losses to the Third World bank.

Green found that Khalil allowed BCCI to use his name and reputation as a
shareholder in exchange for a payment of millions of dollars. The scheme
allegedly included siphoning off more than $250 million from BCCI to Capcom
Financial Services Ltd., a brokerage company partly owned by Khalil.

Khalil's attorneys, James Linn and Stephen Johnson, didn't immediately return
telephone calls Thursday seeking comment. Khalil is retired and living in
Jeddah, Saudi Arabia, according to the liquidators.

``We are pleased that the court has recognized the significant loss to BCCI
caused by the activities of Mr. Khalil,'' said Stephen Akers, a partner in
accounting firm Deloitte & Touche, who is one of the liquidators. ``We intend
to enforce this judgment aggressively so that additional funds can be repaid
to the innocent victims of BCCI as soon as possible.''

The liquidators have said the victims include depositors and other creditors
of the bank who were owed some $10.5 billion.

The ruling family of the Persian Gulf emirate of Abu Dhabi owned 77 percent
of BCCI before it collapsed amid allegations of arms smuggling, drug money
laundering and financing of terrorists. At its peak, the bank had 1.3 million
depositors and operations in 70 countries.

BCCI pleaded guilty in December 1991 to federal fraud charges and forfeited a
record $550 million in assets. In a plea bargain, BCCI acknowledged its
secret, illegal ownership of four U.S. banks, including First American
Bankshares, the biggest bank holding company in Washington at the time.

The late Clark Clifford, a defense secretary under President Lyndon Johnson
and adviser to several Democratic presidents, had been one of BCCI's
principal lawyers in this country and the chairman of First American.

Clifford and his former law partner, Robert Altman, agreed in February 1998
to pay a total of $5 million to settle civil fraud charges in the BCCI case.
In agreeing to the settlement, Clifford and Altman neither admitted nor
denied wrongdoing.

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