Former CEO of the Austrian Hypo Bank, Tilo Berlin, and three other bank officials are under investigation for alleged embezzlement related to dealings with Croatian partners, a bank spokesperson confirmed on Thursday.
Berlin and the three other bank officials are accused of causing damage to the bank amounting to 95 million euros when approving loans, reported the Oberoesterreichische Nachrichten newspaper, and this information was later confirmed by the bank spokesperson to journalists from the Austrian news agency APA. The total damage caused to the bank by various malpractices exceeds 700 million euros, the spokesperson stated. The latest case of embezzlement concerns a Croatian company operating in real estate, which was granted a loan of 80 million euros while Berlin was the CEO of the bank. An internal investigation uncovered the case and reported it.
The suspects are accused of approving the loan without adhering to the usual procedures, and even ignoring warnings from the bank’s risk assessment department. “The damage amounts to 95 million euros,” the bank spokesperson stated. The bank will initiate legal proceedings in this case if the relevant authorities file charges against the suspects.
