Justice Department Letter Vindicates Former American Express Bank International Chairman Sergio Masvidal

MIAMI, Jun 30, 2010 (AllPayNews) -- The U.S. Department of Justice has issued a letter vindicating former American Express Bank International Chairman Sergio Masvidal in regard to a 2007 Deferred Prosecution Agreement with American Express, announced attorney Joseph DeMaria, of Tew Cardenas LLP.

"Pursuant to a settlement with the DOJ, Ken Blanco, Deputy Assistant Attorney General for the Criminal Division, issued a letter saying undisclosed agreements such as the one between a line prosecutor and American Express that kept Mr. Masvidal from continued employment at the bank 'are not part of the criminal division's practice.'

"This letter brings some justice to a grievous wrong, and it is unprecedented to make such a strong statement. Hopefully, Mr. Masvidal can once and for all place this behind him and move on. The international banking community owes a debt of gratitude to Mr. Masvidal for pursuing this case," he said.

Masvidal said: "I fought for three years to preserve my reputation. It is unfortunate that I had to file suit to undo a wrong that never should have taken place. I am glad that senior officials of the Department of Justice saw the need for justice in resolving this case."

"I have known Sergio for 30 years as a premier international banker," said Frances Sevilla-Sacasa, former President of US Trust, Bank of America Private Wealth Management. "He has always enjoyed a solid reputation in the international banking community and amongst his peers. I look forward to seeing him once again actively engaged in the industry as he has a great deal of valuable experience to offer."

Former federal prosecutor Charles Intriago said: "For the many years that I've known Sergio from his work in the banking field when I was president of Money Laundering Alert and the Association of Certified Anti-Money Laundering Specialists (ACAMS), I have always known him as a person committed to a strong compliance culture. I've always thought that Sergio's name would be cleared and I'm glad the U.S. Department of Justice has taken this important step."

Masvidal sued the government over a secret side agreement to a 2007 $65 million Deferred Prosecution Agreement between the DOJ and American Express to resolve alleged lax money-laundering enforcement by American Express Bank International.

Masvidal's suit charged that his constitutional rights to due process were violated because, unbeknownst to him and to U.S. District Judge William Zloch, who approved the settlement, American Express and the DOJ had signed a separate side letter stating that Masvidal and AEBI President Simon Amich would not continue to be employed upon a sale of the bank or at the end of the one-year deferred agreement without the consent of the DOJ. The suit charged that the secret letter made him a scapegoat in the settlement, ruined his reputation and made him unemployable after a stellar career as a top international banker.

On April 2, a federal court held that: "Masvidal has adequately alleged that he was deprived of constitutionally adequate process as he alleges that he received no notice, no hearing, no chance to respond at all before he lost his job, reputation and prospects in the banking industry as a direct consequence of the Letter Agreement." (Case 0:09-CIV-61485-WPD, Document 39, Page 10)

Masvidal had been instrumental in helping the bank emerge from an earlier Cease and Desist order from the Federal Reserve on anti-money laundering issues. That success led to his appointment as Managing Director at American Express Bank and the head of Private Banking worldwide, and eventually to his position as Chairman of AEBI and Vice Chairman of parent company American Express Bank Limited.

"I have known and worked with Sergio for nearly ten years since 1985. He was an outstanding Manager highly regarded by his superiors, peers and subordinates. As one of my Direct Reports, I found him as a person of the highest integrity and ethical standards, never willing to compromise his reputation as a well-rounded and experienced banker," said Sreedhar Menon, Retired Deputy President and former Member of the Board of American Express Bank Limited.

SOURCE: Tew Cardenas LLP

Tew Cardenas LLP
Joseph DeMaria, 305-539-2240