Out Of Our In-Box: Whistle Blowers Spark Lawsuits Against The Four Big ADR Depositary Banks
And Promise A Film On “The Biggest Financial Industry Cover-Up In History”
Class action suits have been filed, or are set to be filed, against all the major ADR Depositary banks – Citi, JPMorgan Chase (both filed) BNY-Mellon and Deutsche Bank – asserting that for at least 15 years, the banks have been secretly “assigning” foreign exchange rates that are far below the amounts actually realized, and systematically and illegally pocketing the “spread” between the U.S. dollar dividends and other distributions they pay out to ADR holders and what they actually realize in the marketplace. The Benjamin Merryman et al. v. Citigroup et al. suit in USDC for the Western Division of Arkansas, cites a survey of 610 cash distributions, covering 22 currencies and 83 distinct ADR issues, where in 71% of the cases the distributions were below the median exchange rate for the day, and where 27% were at or near the lowest rates of the day.
Whistleblowers, who indeed have ‘inside knowledge’ about the ADR industry, have told the OPTIMIZER that there’s a lot more juicy stuff to come – including a film documentary exposing the “Greatest Cover Up in International Capital Markets History” that will detail “crimes the Depositary banks commit/committed, enabled and/or facilitated” including “Billions of dollars in bribes to foreign private issuers and government officials. Billions of dollars in tax evasion by these banks. Share-Price and Shareholder Voting Right manipulation…the destruction of global shareholder wealth through carefully crafted Global Naked Short Positions issued by the banks for market-price effect and [market] manipulation as well as continuous Phantom Share distribution [and] global money laundering using ADRs and GDRs” which the whistleblowers say “represent a substantial threat to the homeland security of every nation.” Stay tuned for more…