US judge blocks Bandar fund transfer

A federal judge has temporarily blocked Prince Bandar Bin Sultan, former Saudi ambassador to the United States, from removing real estate sales proceeds from the United States pending resolution of a class-action lawsuit.

Gulf News

Washington: A federal judge has temporarily blocked Prince Bandar Bin Sultan, former Saudi ambassador to the United States, from removing real estate sales proceeds from the United States pending resolution of a class-action lawsuit.

The suit filed last September by a Michigan city retirement system accuses current and former directors of BAE Systems Plc, a giant British defence company, of breaches of fiduciary duties in connection with $2 billion (about Dh7.34 billion) or more in alleged illegal bribes paid to Bandar in connection with an $86 billion (about Dh315 billion) BAE arms sale to Saudi Arabia in 1985.

Bandar also is named a defendant in the suit, along with the former Riggs Bank of Washington and its successor, PNC Financial Group. BAE and Bandar have strongly denied that illegal payments were made to Bandar.

A hearing was set for February 14 on whether to issue a preliminary injunction extending the temporary order.

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