I didn't see him or his associates suing The New York Times.
Clifford and Altman Settle With Fed Over B.C.C.I.
By PETER TRUELL
Published: February 04, 1998
Resolving one of the last actions against them stemming from the 1991 collapse of the Bank of Credit and Commerce International, Clark M. Clifford, a former Presidential adviser, and his law partner, Robert A. Altman, have reached a $5 million settlement with the Federal Reserve.
Mr. Clifford -- who advised Democratic Presidents from Harry S. Truman to Jimmy Carter -- and Mr. Altman did not admit to any of the Federal Reserve's allegations. The Fed cut back its charges against the two lawyers in 1996.
As part of the settlement announced yesterday, Mr. Altman agreed not to participate in the banking industry without approval from the Federal Reserve. The Fed dismissed a similar prohibition action against Mr. Clifford, who is elderly and in poor health.
With the Fed settlement, the two men face only legal action from the liquidators of B.C.C.I and the holding company of First American Bankshares Inc., a banking group based in Washington that was secretly owned by B.C.C.I.
Mr. Altman was acquitted in 1993 in New York State court of charges that he had conspired to mislead regulators and that he had illegally assisted B.C.C.I. in its quest to acquire First American and other American financial institutions.
The Federal Reserve had pursued Mr. Clifford and Mr. Altman, 50, in the scandal surrounding B.C.C.I., which was closed by regulators around the world in the summer of 1991 after it became apparent that the bank had falsified its accounts for years, defrauded depositors of billions of dollars and been involved in money-laundering and other illegal activity.
Mr. Clifford and Mr. Altman acted as counsel to B.C.C.I. and also served as chairman and president of First American Bankshares. Both men have repeatedly denied that they knew of, or were involved in arranging, B.C.C.I.'s secret ownership of First American.
In recent years, the Fed had whittled down its case, dropping its argument that Mr. Clifford and Mr. Altman had violated banking laws by permitting B.C.C.I. to exercise influence over the management and operations of its subsidiaries, including First American. In a March 1996 motion to modify its case, the Fed also said that it was not charging Mr. Clifford or Mr. Altman with involvement in the sham loans and nominee agreements with which B.C.C.I. secretly acquired First American.
Both Mr. Clifford and Mr. Altman owned and profited from stock that they held in Credit and Commerce American Holdings, or C.C.A.H., the holding company for First American. To reach their settlement with the Fed, the two lawyers are giving up about $5 million of that stock, more than half their residual portion of their shares in C.C.A.H. The money will help compensate depositors. In 1993, the First Union Corporation acquired most of the businesses of First American.
''When this case arose seven years ago, we publicly denounced the sensational charges against us as wholly untrue,'' Mr. Clifford and Mr. Altman said in a statement yesterday. ''In the course of these administrative proceedings, the Federal Reserve dropped the central allegations against us. We are confident that the remaining issues would also have been resolved in our favor. However, Mr. Clifford is now 91 years old and in poor health. Under the circumstances, to continue for years and at great expense to litigate historical events of little current relevance made no sense.
''The Federal Reserve was willing to drop all its demands for fines and civil money penalties, and not to make claims against a portion of our stock and the other securities we continue to own.''
Mr. Altman said he would not elaborate on the statement. But others said the settlement was quite favorable despite the price tag.
''Five million dollars is a significant amount of money, but it needs to be put in some sort of context,'' said David McKean, a biographer of Mr. Clifford who now works as staff director at the Senate's permanent subcommittee on investigations. ''Clifford and Altman pocketed nearly $10 million in a highly unusual stock deal involving First American and B.C.C.I. in the late 1980's. They are essentially forfeiting only half of their profits.'' But, he added, ''I am sure Clifford is delighted to put this sad chapter in his life behind him.''
A lawyer for Mr. Clifford and Mr. Altman also argued that the Fed had already gutted its own case before this settlement. ''The principal charges that the Fed brought in 1992, that Clifford and Altman assisted B.C.C.I. in acquiring control of First American, were abandoned by the Fed in 1996,'' said Mitchell Ettinger, a partner at the law firm of Skadden Arps, Slate, Meagher & Flom who has represented Mr. Clifford and Mr. Altman in several Federal and state matters. ''The case that settled today really involved allegations of technical banking violations.''