NY Chocolate Officials ‘Bitter’ About Embezzlement Allegations

FULTON, NY -New York Chocolate and Confections Company officials vehemently deny they’re part of a scheme to launder millions of dollars from the Ivory Coast.

News started to circulate around the Ivory Coast this past month after Dr. Ousmann-A. Gbane, principal and CIO of Lion Capital Management, gave an interview about the alleged improprieties to Radio France Internationale (RFI). Lion Capital is a 20 percent shareholder in New York Chocolate and Confections Company (NY3C).

From California Monday, Gbane said that the details center around allegations that approximately $35.9 million of investor funds never made it to the local plant.

“The money was sent from the Ivory Coast but never reached the plant,” Gbane said.

Instead, Gbane said that the bulk of the funding was transferred to an account in Georgia that was tied to another company, I.C. Trading.

Gbane said while wire transfer receipts from the bank came with both company names, he stressed that I.C. Trading was not affiliated with New York Chocolate.

“New York Chocolate never had an account in Georgia,” he said.

“I don’t know who was involved,” Gbane added. He stressed, however, that a substantial amount of money is unaccounted for to date.

Had that money arrived, Gbane said that the company would be flourishing. Gbane said that the investigation has reached to the president of the Ivory Coast, the state department, the treasury department and the European Union.

“We have sufficient documents to show there was money laundering,” Gbane added.

Top officials at the plant denied the allegations during a press conference Monday. (Editor’s note: Fulton Daily News was not notified about the press conference.)

According to other media reports, Jean-Claude Amon told those gathered that the minority partner in the company is spreading false rumors.

Paul Bankes Jr., NY3C’s Philadelphia-based attorney with the firm Whiteman, Bankes & Chebot LLC, also said that the allegations coming forward are false.

Bankes stressed that he and Yalle Agbre, the company’s treasurer, are able to account for all of the money that has come in to the United States for the chocolate plant.

Bankes started to receive and distribute the money for NY3C approximately two years ago.

“I make sure that all of the benefits due to the employees are paid first,” he said. From there, Bankes said that bills, taxes and debts are taken care of with those funds. He noted that as the manager of the account, he also receives a fee for his services that are taken from that money.

“Wire transfers were made,” Bankes said. “(The money) was paid out to the company’s benefit.”

Bankes said, too, that the company’s money problems are not the result of embezzlement; rather, he said the concerns are more the result of substantial bills to keep the plant going with no income, in addition to a line of litigation between NY3C and Lion Capital.

When he first got involved, Bankes said that there were “issues” over ownership of the company. The FRC subsequently started a lawsuit in Delaware against Lion Capital to determine ownership. The case was resolved around the beginning of 2007 when the judge decided to uphold Coffee and Cocoa Regulation Funds’ (FRC‘s) 80 percent share in the company and Lion Capital’s 20 percent share.

“He wouldn’t get into the debate,” Bankes said. “He ruled that he would treat the parties as they had treated themselves.”

Bankes said that NY3C sued Lion Capital again in a California-based suit after it discovered that a $565,000 Empire Zone tax refund that was due to NY3C was sent to and deposited by Lion Capital.

“We didn’t receive it,” Bankes said. “They said they mailed it to Lion Capital. … We demanded that the money be returned to New York Chocolate. They had no authority to expend that money.”

On Sept 13, Bankes said the judge in that case ruled for NY3C again and ordered Lion Capital to reimburse the company $606,000.

“In the order, the judge says the defendant’s actions were willful, tactical, egregious and inexcusable,” Bankes said.

To date, Bankes said Lion Capital still has not returned or accounted for the money.

“I can show what I have received and spent on the company’s behalf,” he said. “The only money I can’t account for (since he started managing the company’s expenses) is the money that Lion Capital received.”