WASHINGTON, D.C. — According to a complaint filed May 15 in federal court, for years, Banque du Liban (BDL), Byblos Bank, S.A.L. (Byblos) and others (together, the “Lebanese Banking Enterprise”) have stolen billions of dollars from U.S. depositors. These U.S. citizens and residents claim the Lebanese Banking Enterprise systematically defrauded them by promising exorbitant interest rates and misrepresenting the banks’ financial health. The crisis led to a loss of faith in the Lebanese banking system, with the majority of people unable to access their life savings, creating unprecedented poverty and unemployment rates.

On Wednesday, CGL along with co-counsel filed a first-of-its kind RICO case in the U.S. District Court for the District of New Jersey to right this wrong.

“Our clients find themselves under attack by the very fiduciaries that are mandated to safeguard their lifesavings, and we take that very seriously,” says Charles LaDuca, chairman of Cuneo Gilbert & LaDuca. “We intend to advocate aggressively for our clients, and filing this first-of-its kind case is just the first step towards justice.”

“This case will impact thousands of lives,” says Don Barrett, a partner with Barrett Law Group, P.A. “This Ponzi scheme has been going on for years, and it is long past time we do something about it.”

The complaint alleges that starting in the 1990s, following the end of a brutal civil war in Lebanon, the Lebanese Banking Enterprise took advantage of the economic chaos. The bank targeted U.S. depositors, specifically U.S. citizens of Lebanese descent, through offering incredibly high interest rates and touting a strong relationship with U.S. banks. The interest rates they claimed to offer were entirely unsustainable.

After luring in their victims, the plaintiffs allege the Lebanese Banking Enterprise conducted a bait-and-switch. The banks convinced depositors to convert their U.S. dollars to Lira, the Lebanese currency, using their conversion rates. The artificial conversion rates misrepresented the value of the Lira, leaving victims with nothing.

“Lives were destroyed by the Lebanese banks’ actions,” LaDuca said. “This lawsuit will give some measure of justice and accountability to the victims.”

For more information and to join the lawsuit contact: Charles J. LaDuca at (202) 789-3960