The conviction in U.S. court of ex-Julius Baer banker Matthias Krull over a Venezuelan money laundering scheme has sparked an investigation by prosecutors in Liechtenstein.
Matthias Krull's hopes hinge on being able to turn state's witness in order to lessen his ten-year sentence for money laundering, imposed 16 months ago by a Florida judge. The former Julius Baer helped rinse $1.2 billion in money linked to PDVSA, Venezuela's state-backed oil firm, via sham investment accounts.
The Krull affair has rocked the Swiss bank, which recently emerged from a costly regulatory scrub of its accounts and was hit with heavy sanctions from its overseer. Krull, who worked for Credit Suisse before joining Julius Baer, emerged as a willing helper to Venezuelan «bolichicos,» a crop of younger businessmen well-connected in government.
U.S. Legal Aid
The money flowed to Europe through channels in Bulgaria, Malta, Spain – and in Liechtenstein. Prosecutors in the tiny offshore haven opened a criminal investigation against Krull, according to documents posted on «Offshore Alert»; Swiss blog «Gotham City»(behind paywall, in French) also reported the probe.
It isn't clear what the principality's prosecutor, Robert Wallner, is investigating. A source familiar with the probe told finews.com that Krull tapped various fiduciaries in Liechtenstein when laundering the Venezuelan money.
American Accounts
Liechtenstein has asked the U.S. for judicial aid in the Krull probe. Specifically, the Liechtenstein prosecutor is after evidence held by Bank of New York and J. P. Morgan, two U.S. banks which reportedly maintained accounts for Malta-based asset manager Portmann Capital Management and Venezuelan shipping company Solar Cargo.
Led by Swiss bankers Kurt and Yves-Alain Portmann, Portmann allegedly transferred millions between accounts in the U.S. and Malta on behalf of a Venezuelan client. Miami-based Solar Cargo allegedly dealt with sham credit cards to mask the source of funds.
Union Bank's Woes
It emerged last year that Venezuelan graft money made its way to Liechtenstein: Vaduz-based Union Bank accepted funds from a Turkish company enmeshed in the Latin American corruption scheme (the bank itself raised the money laundering alarm with regulators).
