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Former Austrian bank boss jailed | Former Austrian bank boss jailed |
(about 2 hours later) | |
The former head of one of Austria's biggest banks, Bank Fuer Arbeit und Wirtschaft (Bawag), has been jailed for nine-and-a-half years for fraud. | The former head of one of Austria's biggest banks, Bank Fuer Arbeit und Wirtschaft (Bawag), has been jailed for nine-and-a-half years for fraud. |
Helmut Elsner, 73, Bawag's ex-general director, was one of nine people who were convicted in a case linked to the collapse of US brokerage Refco. | Helmut Elsner, 73, Bawag's ex-general director, was one of nine people who were convicted in a case linked to the collapse of US brokerage Refco. |
Judge Claudia Bandion-Ortner found the defendants responsible for 1.4bn euros ($1.9bn; £1.1bn) of losses at Bawag. | |
All had denied charges of breach of trust, fraud and false accounting. | |
The prison term was just short of the 10-year maximum for his crimes. | |
As well as his prison sentence Elsner was ordered to repay Bawag 6.8m euros in pension benefits. | As well as his prison sentence Elsner was ordered to repay Bawag 6.8m euros in pension benefits. |
Witnesses called during the year-long trial included a former Austrian chancellor, an ex-finance minister and a member of the executive board of the European Central Bank. | |
Bankruptcy filing | |
Bawag had been under investigation for lending ex-Refco chief executive Phillip Bennett several hundred million dollars before the US brokerage filed for bankruptcy. | Bawag had been under investigation for lending ex-Refco chief executive Phillip Bennett several hundred million dollars before the US brokerage filed for bankruptcy. |
Elsner was the key defendant in the case in Austria, and had fled to France in 2006 when Bawag's difficulties became known. | Elsner was the key defendant in the case in Austria, and had fled to France in 2006 when Bawag's difficulties became known. |
Bennett was sentenced to 16 years in prison in the US on Thursday. | Bennett was sentenced to 16 years in prison in the US on Thursday. |
The other eight defendants were made up of Bawag board members, the ex-supervisory board chief, the former secretary general, an auditor and an independent hedge fund manager. | |
They received total fines of more than 72m euros, as well as sentences ranging from an 18-month suspended sentence to five years in prison, for a variety of crimes including breach of trust, falsification of accounts, and aiding and abetting a breach of trust. | |
All but one of them said they would appeal against their convictions. |
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