Bankrupt Ala. County Accuses BNY Mellon Of Swiping Funds

Law360, New York (April 09, 2012, 8:34 PM ET) -- Bankrupt Jefferson County, Ala., on Monday accused The Bank of New York Mellon Corp. of improperly transferring more than $584,000 from a construction equity account to itself, asking for a declaration that the funds belong to the county, free of any creditors’ interests.

The struggling county launched the counterclaims in response to the adversary proceeding filed by the bank, which is indenture trustee for $3.6 billion in sewer warrants issued by the county, claiming that it is entitled to receive all system revenues outside operating expenses....
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