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Swiss Private Bank Scandal: Board Member Accused of Multi-Million Dollar Money Laundering Scheme

A board member at a Swiss private bank faced accusations of money laundering today after authorities flagged deposits he made to the Dominican Republic. Allegations surfaced that the banker had taken illicit funds from a client and deposited them under his own name at his institution. The customer had entrusted the banker with the cash, aiming to obscure its true ownership to shield his wealth from government scrutiny.


Swiss Private Bank Scandal

The accused, whose identity remains protected under Swiss law, stands charged with involvement in a multi-layered criminal conspiracy spanning seven years until 2015, amounting to over SFr14 million ($15.4 million). The scheme unraveled after Swiss money-laundering authorities raised concerns about significant transfers the banker made to businesses in Central America. Prosecutors asserted that funds flowing back from these businesses to the banker were "of criminal origin."


The indictment includes charges of theft, money laundering, and fraud, as well as accusations of using client funds to prop up the financially troubled institution he worked for. The accused, a board member of a Geneva-based private bank, exploited the trust placed in him by his client, diverting the funds for personal use and extending large loans to associates, family, and friends.


COMPANY FORMATION &   DOMICILATION SERVICES

According to the prosecutor, the misappropriated assets primarily financed the lavish lifestyle of the accused and his family. Additionally, the banker allegedly falsified bank statements routinely, deceiving both his client and the bank's authorities. Despite being aware of a criminal investigation, the banker attempted to use significant portions of his client's funds to support the bank, even after being notified of the probe.


The case draws parallels to a previous incident involving Swiss banker Benjamin G, a former employee of Julius Baer, who was convicted last October of embezzling over SFr22 million from the savings of an elderly Israeli-Ukrainian couple. Benjamin G had also engaged in forging bank statements and had full power of attorney over client assets.


The indictment was filed in Bellinzona, southern Switzerland, withholding the name of the private bank involved. Authorities emphasized the seriousness of the allegations, underscoring the breach of trust and financial misconduct perpetrated by the accused.

By fLEXI tEAM

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