Banks: Austria's judiciary is investigating ex-banker Meinl on suspicion of breach of trust

Vienna. The Austrian justice system is investigating the former banker Julius Meinl and other people responsible at the former Meinl Bank. It is about suspicion of breach of trust, embezzlement and fraudulent Krida with an alleged total loss of around 150 million euros, as the economic and corruption public prosecutor's office (WKStA) announced on Thursday.

Several properties have already been confiscated to secure possible creditor claims. There was initially no statement from Meinl or his representatives. The presumption of innocence applies.

In addition to Meinl, whom the WKStA describes as the de facto decision-maker, the investigations are aimed at former board members, supervisory boards and employees as well as the companies involved. They are accused of having set aside the bank's assets in advance of the bankruptcy. Specifically, according to the WKStA, this involves, among other things, sales below value, loans to related companies, excessive fees for Meinl and the transfer of assets from the Caribbean subsidiary and from Meinl's private ownership.

For decades, Meinl was the face of the private bank named after his family based in downtown Vienna and was one of the most famous bankers in Austria. The former Meinl Bank lost its banking license in 2019 and later became insolvent. The banking business has nothing to do with the Meinl family's original grocery and delicatessen business.

The scion of the well-known entrepreneurial dynasty had previously been targeted by the judiciary. In 2009, Meinl was temporarily arrested on suspicion of investment fraud in connection with the real estate company Meinl European Land (MEL). After allegations surrounding undisclosed securities buybacks became known, he resigned as CEO of the bank at the end of 2007, but remained chairman of its supervisory board. The investigation into the matter was later discontinued.