He probed the currency market dealing of former Swiss National Bank President Philipp Hildebrand. Now, Daniel Senn finds himself charged with using insider information from Julius Baer.
Daniel Senn, a banking specialist and former top auditor at KPMG, is alleged to have used insider information for share trading, according to Swiss weekly «Schweiz am Wochenende» (in German). In addition, the 60-year-old Senn failed to provide Swiss officials with the proper documents requested.
The move is a remarkable fall from grace for Senn, who gained prominence from his probe of the dealings of Swiss banker Oskar Holenweger, and in 2012 the currency market activities of former Swiss National Bank head Philipp Hildebrand.
Senn concluded he couldn't find any irregularities in Hildebrand’s currency market dealings, which ultimately cost the central bank head his job.
From Finma Meeting...
Federal prosecutors launched their inquiry against Senn some three years ago, and the case will now be heard at a federal court on July 25. The charges against him, whicSeinnhe disputes, relate to information about a planned takeover of Bank Safra Sarasin by Julius Baer in 2011.
Senn headed KPMG’s auditory mandate for Julius Baer, and had access to three internal protocols relating to the takeover project. In addition, Senn was present at a September 2011 meeting with financial regulator Finma, when the planned takeover was discussed.
...Into Children’s Account
After the Finma meeting Senn bought 2,000 Sarasin shares for 50,000 Swiss francs ($49,900), and shortly afterwards increased his stake, with the shares then being booked onto an account held by his children.
In October the takeover discussions were revealed and the Sarasin shares jumped 15 percent, giving Senn a profit of 30,000 francs. Julius Baer didn’t eventually do a deal with Sarasin, which was taken over by Safra. Senn left KPMG five years ago.
