12. 08. 11. - 15:21

New charges against former Hypo bank boss Kulterer

The state prosecution Klagenfurt, Carinthia has presented new charges of infidelity against the former head of the scandal-ridden Carinthian Hypo Alpe Adria bank.

Besides Kulterer, 57, ex-Hypo board member Günter Striedinger, ex bank tax counsellor Hermann Gabriel and lawyer Gerhard Kucher face the same charges. The state prosecution alleges that the accused knowingly caused the Hypo bank 5.49 million Euros of damage.

The prosecution stated that they "unlawfully misused their privileges" in 2004 to grant eleven banks from Liechtenstein 5.15 million Euros in loans that were then allegedly used by another bank to covertly buy preferred shares.

The prosecution said the 5.5 million damage resulted from the difference of paid out dividends for these shares and the low interest rates on the loans that had been used to buy the shares.

Streidinger denied the allegations this spring saying that the Hypo board had been fully informed about the deals.

The Hypo bank has repeatedly made news headlines since 2006 with incidences of balance fraud after speculation losses, suspicions of insider deals during the sale of the bank to the BayernLB bank, suspicions of covert political party financing and stock business fraud.

It was nationalized in 2009.

Kulterer had been taken into detention awaiting trial custody in August 2008, was tried and cleared of charges of infidelity. This June he demanded compensation for the detention awaiting trial.