Flachgauer Bank
Criminal case involving loan defaults in the millions
A suspected criminal case at Raiffeisenbank Flachgau Mitte has brought the Raiffeisenverband Salzburg (RVS) onto the scene. Loans amounting to more than 20 million euros were granted to three property developers. The bank has to cope with loan defaults due to suspected embezzlement.
Dr. Wolfgang Kleibel, lawyer for the RVS and President of the Salzburg Bar Association, explained the facts of the case: Raiffeisenbank Flachgau Mitte had granted loans amounting to more than 20 million euros to three property developers. The trustees involved are alleged to have misappropriated the loans disbursed, which were not used in accordance with their intended purpose and the land register collateral was not properly executed.
An alleged breach of trusteeship had occurred and the competent Vienna Bar Association had already been called in. Further details could not be provided at this time, as the comprehensive review of the transactions had not yet been completed.
CEO Heinz Konrad emphasized that the customers of Raiffeisenbank Flachgau Mitte will not suffer any damage as a result. RVS is available with all its economic strength to ensure that all obligations to business and private customers are fulfilled. Day-to-day business at the four bank branches in Bergheim, Eugendorf, Hallwang and Plainfeld will continue as usual with around 40 employees.
When asked by the "Krone" at the Salzburg police, press spokeswoman Karin Temel said: "We have not received any reports."
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