Liberty Reserve founder pleads not guilty in NY

AP News
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Posted: Oct 14, 2014 3:43 PM

NEW YORK (AP) — A man who prosecutors say created an online bank that laundered $6 billion for various criminals has pleaded not guilty in a New York court.

Arthur Budovsky (boo-DAHV'-skee) entered the plea Tuesday afternoon in Manhattan federal court. Prosecutors say he is the Costa Rican founder of a currency transfer and payment processing company called Liberty Reserve.

It was his first court appearance since he was extradited on Friday from Spain. He had been held there since his May arrest.

Federal Judge Denise Cote (koht) set a trial date for next September. Budovsky was returned to prison. He did not request bail.

Defense lawyer Steven Frankel says the government appears to be exaggerating the dimensions of the case. He noted that co-defendants have pleaded guilty to lesser charges.