NEW YORK (AFX) - The law firm Srour Fischer & Mandell LLP announced today that it has filed a first-of-its-kind RICO (Racketeer Influenced and Corrupt Organizations) action against Arthur Andersen Worldwide on behalf of certain shareholders of Brazil's Banco Excel Economico SA.

The suit seeks, among other things, damages of at least 350 mln usd and treble damages for Andersen's role in fraudulently wresting control of the bank away from the plaintiffs.

The complaint alleged that Andersen violated the RICO statutes -- its partners participated in a number of worldwide criminal conspiracies to provide fraudulent accounting and auditing services, obstructed justice, engaged in extortion.

It also said Andersen encouraged its partners and employees to become employed in senior positions by clients, so that the pattern of deception could be continued.

At the heart of this matter is Andersen's alleged conspiracy with Banco Bilboa Viscaya Argentaria S/A, the second largest Spanish bank (now under indictment for bribing foreign officials to purchase local banks at bargain basement prices), who sought to acquire Excel, the complaint said.

The plaintiffs charged that Andersen, working as BBVA's auditor, fraudulently undervalued the bank, and worked in concert with BBVA and senior officers of the Central Bank of Brazil (who are also currently under indictment for accepting bribes) to strong-arm the plaintiffs to sell the bank.

Once the sale was consummated for about the equivalent of a dollar, Andersen placed its own employees in management positions. The complaint details that after the "purchase", Andersen's valuation of the bank rose dramatically, but the plaintiffs were not compensated accordingly.

The complaint was filed in the US District Court for the Southern District of New York, and was assigned to Judge Denny Chin.

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