A Swiss federal criminal court has sentenced a Geneva-based wealth manager to seven years and 11 months in prison for diverting client funds, forgery and money laundering.
The 70-year-old defendant, found guilty on all counts, diverted CHF 14.3 million from assets entrusted to him between 2009 and 2015, according to a judgment published on Tuesday. He was convicted of qualified misappropriation, forgery and money laundering by the Bellinzona-based federal criminal court.
The funds originated from a corporate client that transferred nearly CHF 44 million to a bank account opened by the manager under false pretenses. The client believed the money would be managed as a "good family father" would, but the manager emptied the account in stages. To conceal the activity, he provided the client with forged bank statements, as the client had no direct access to the account.
Rather than investing the money, the manager used it to finance his personal lifestyle. He purchased a Porsche Cayenne valued at CHF 90,000, described in court as a "personal expense" to which he claimed entitlement. He also paid CHF 42,000 toward his daughter’s wedding using client funds. Additionally, he increased his stake in a bank and invested in the solar industry, while extending loans whose repayments flowed into his personal accounts.
The prosecution had sought a five-year sentence, but the court exceeded this demand. The defendant was also ordered to pay CHF 12.3 million in damages to his former client and cover legal costs. To secure these payments, the court ordered the seizure of the manager’s assets. He has indicated plans to appeal the verdict.
