Former Ukraine PM to face trial

by Thomas Catán in New York

Pavlo Lazarenko, the former prime minister of Ukraine, is to face trial in the US on charges of laundering millions of dollars in embezzled funds through US banks and brokerages.

According to an indictment by a federal grand jury unsealed on Thursday, Mr Lazarenko transferred around $114m (£76m) that he embezzled in office into bank and brokerage accounts in the US between 1994 and 1999. Those included accounts at Merrill Lynch, Bank of America, Fleet Boston Robertson & Stephens, Commercial Bank of San Francisco, Pacific Bank, Fenner & Smith and Hambrecht & Quist.

Of that, prosecutors said, $20m was laundered through bank accounts in the US. In all, Mr Lazarenko, who was ousted in 1997 after a year as prime minister, will face seven counts of money laundering, one count of con-spiracy to commit money laundering and 23 counts of transporting stolen property.

His lawyer, Michael Handwerker, said Mr Lazarenko would plead not guilty to the charges, but declined further comment.

Mr Lazarenko is currently being held in a California detention centre awaiting extradition to Switzerland, where he is wanted on money laundering charges.

While the US could go ahead with its own prosecution under the new indictment, authorities are also continuing to co-operate with the Swiss. Prosecutors from both sides are set to consult on the order of proceedings.

The indictment throws into question the possible testimony of Mr Lazarenko before the US Congress. The former prime minister had been in talks with several committees in Congress.

END

Thomas Catán
June 2, 2000
New York

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