BNY Mellon said disclosures that it made to clients about the trading negate the claim that the bank engaged in a “scheme to defraud,” according to a court filing Tuesday in U.S. District Court in New York.
“The purported scheme to defraud is implausible,” BNY Mellon said. “A party that knows exactly what it is getting, and at what price, cannot have been defrauded.”
U.S. Attorney Preet Bharara in Manhattan said in an amended complaint that BNY Mellon defrauded clients, including public pension funds, of more than $1.5 billion through foreign-currency trades. Attorneys general in New York, Florida and Virginia are also suing BNY Mellon over its foreign currency trading practices.
Ellen Davis, a spokeswoman for the U.S. Attorney’s Office, declined to comment on BNY Mellon’s filing.