Bank Legal Dept. Might Have Known of Spy Scheme Against Retired Lawyer
Although Deutsche Bank AG officials say otherwise, an internal report by a U.S.-based law firm suggests that the leader of the German bank and its legal department may have known of a controversial corporate spying scheme, reports the Wall Street Journal (sub. req.).
In one of the most controversial aspects of the scheme, private investigators for the bank rented the home of retired lawyer and dissident shareholder Michael Bohndorf, in order to monitor him, take photos of the interior of his home and collect other information. While a 150-page internal report by Cleary Gottlieb Steen & Hamilton doesn’t determine that Chairman Clemens Börsig or the bank’s top legal staff authorized the spying mission, neither does the report rule this out, the newspaper says.
The Cleary report does conclude that both knew of the operation, although exactly when they did isn’t clear, according to the article.
Investigations are ongoing by both German authorities and the U.S. Securities and Exchange Commission.
The bank, which currently is withholding comment until investigations are completed, has previously pointed the finger for what it termed “questionable methods” at lower-level corporate security personnel.
Earlier coverage:
ABAJournal.com: “Big Bank Legal Dep’t in Spy Confab, Nixed Law Firm Mole Plan, Detective Tells WSJ”
