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Saturday, April 4, 2009

Austrian banker detained over suspected fraud

The owner of Austria's Meinl Bank has been arrested over alleged breach of trust and fraud, the office of Vienna's public prosecutor has announced. 

Spokesman Gerhard Jarosch told the Associated Press that Julius Meinl V - a member of the Austria's prominent Meinl dynasty - was arrested in the capital after authorities became concerned that he may try to flee the country. 

Mr Meinl, who is a British national, is accused of defrauding investors through a series of transactions involving Atrium European Real Estate, then known as Meinl European Land. 

The company develops and operates shopping centres in central and eastern Europe. 
"It's a very complicated matter," Mr Jarosch said. 

A judge ruled yesterday that Mr Meinl could be held for at least another fortnight while investigators continue their probe, but Mr Jarosch told the AP that he could soon be released on €100 million ($134 million) bail. 

The arrest comes after Austrian authorities raided several properties in connection with the case in February. 
Meinl Bank, part of the 150-year-old Meinl Group, was established in 1923. 

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