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A private banker stands accused of cheating wealthy clients out of millions at Berenberg and other wealth managers. For Berenberg, the case is especially embarrassing.

Geneva's prosecutor is investigating him for fraud and forgery. The authorities were alerted to the Swedish private banker of aristocratic descent by his former employers, Berenberg Switzerland and Aldrin Wealth Management in Geneva, as finews.com reported.

Research by finews.com shows that the private banker rolled out his scheme first at EFG International, then Berenberg, and finally at Aldrin before he was caught. He moved some of his clients with him when he moved – and allegedly kept cheating them.

«Eddie» at Berenberg

finews.com has learned of three Swedish clients who allege that they were cheated out of several million euros – the final tally is likely to be far higher than that. The chances for the clients to recoup their funds from the wealth managers are scant. Why? The banker's scheme was complex and layered, and involved helpers and friends in Sweden.

Eddie, was he was affectionately known at Berenberg, sold shares and bonds in vehicles founded by Swedish accomplices to his clients back in Switzerland – without their knowledge.

Lapsed Without Value

One of them is Clarinova, which was founded in 2010 in Ireland. Another is Wifog AB, which «Eddie» himself held a stake in and also sat on the board of until last year. Wifog's bonds has lapsed and the shares are virtually worthless.

The banker transferred the proceeds from stock and bond issues and transferred them to his alleged accomplices, which include people with a Swedish criminal record involving drugs. Berenberg itself is also a victim of Eddie.

Tie-Up With Sham Firm

If raises alarm bells that a bank like Berenberg, which would have been mindful of its reputation, allowed itself to be convinced by a private banker to issue stocks and bonds and act as a broker for the investments. Berenberg even entered into a cooperation with Wifog, the Swedish vehicle, three years ago.

The pact called for Berenberg to carry out financing for Wifog – at a 5 percent commission. Two of the bank's managers signed the contract, which was dissolved last year.

Nothing Amiss

The bank, which was bought be wealth investors Michael Pieper and Adrian Keller several weeks ago and rebranded into Bergos Berenberg, said it is working with authorities on the case, without elaborating.