An ex-Julius Baer heavyweight private banker was nabbed in the U.S. on suspicion of laundering corrupt Venezuelan funds. The move raises questions over how deeply the Swiss bank is involved in the scandal.
The U.S. «Operation Money Flight» against organized Venezuelan money laundering threatens to become a scandal for the Zurich-based private bank. One of those arrested is Matthias Krull (pictured below).
The private banker was until recently vice-chairman of Julius Baer in Panama. Last month, he left Julius Baer recently for Genevan private bank Gonet in the Bahamas, as finews.com reported.
$1.2 Billion laundered
Krull was arrested overnight in Miami, and an accomplice Gustavo Adolfo Hernandez Frieri, was apprehended in Sicily, and is now awaiting extradition to the U.S. Krull, like Hernandez Frieri, is alleged to have been responsible for the bank’s money laundering activities.
It involves some $1.2 billion, linked to Venezuelan state-controlled oil firm PDVSA and businessmen close to President Nicolas Maduro and his predecessor Hugo Chavez.
Nickname «Bolichico»
The Department of Justice, or DoJ, names those who haven’t yet been arrested and categorizes them under the name «Boliburgués». This describes an economic elite in impoverished Venezuela comprising young very wealthy businessmen. In Venezuela one of them, Francisco Convit Guruceaga, is known by his nickname «Bolichico».
The PDVSA corruption affair has already made big waves. Swiss regulator Finma last year began probing Swiss banks, including Julius Baer. It is alleged Krull’s accomplice Frieri laundered money through his firms Global Security Advisors and Global Strategic Investments in Miami.
Hunting Ground Venezuela
The German-born, Caracas-schooled banker was known as an «onboarding star» for Latin America at Julius Baer: he always ensured buoyant net new money and enjoyed cozy ties to the rich and powerful, his «hunting ground».
A decade ago the then Latin America of Julius Baer, Gustavo Raitzin, recruited Krull from Credit Suisse. The 44-year-old Krull then lived and worked in the capital Caracas, before moving for security reasons to Panama, where he continued to deal with Venezuelan client monies.
Armed with Pistol and Alsatian
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