Lehman to sue over Japan 'fraud'

Lehman to sue over Japan 'fraud'

Lehman Brothers, one of America's largest investment banks, plans to sue a Japanese trading house, saying it has been the victim of a complex fraud.

The US giant is seeking to recoup $350m (£175m) from Marubeni over loans given through Marubeni to a now bankrupt medical company called Asclepius.

Marubeni counters that it has also been a victim of fraud, yet added that it had sacked two employees.

No-one from Asclepius or its parent firm LTT Bio-Pharma have commented.

'Confident'

"We are confident in our legal claim which we will pursue until we receive repayment from Marubeni," said Matthew Russell, Lehman Brothers' head of corporate communications for Asia-Pacific.

He added that Lehman Brothers had been "working closely with the [Japanese] authorities on a fraud it uncovered that was perpetrated by employees at Marubeni... at the company's offices."

While the exact details of the alleged fraud are unknown, lurid media reports coming out of Japan allege the wholesale use of fake documents.

"We have nothing to do with the fraudulent acts, and we have no obligation to cover any repayment requests," Marubeni said in a statement.


Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/7321284.stm

Published: 2008/03/30 10:41:04 GMT