Four senior officials from Bank Leumi Romania, including CEO Manfred Rauchwerger, have been questioned by government authorities there. Indictments are expected to be filed soon, according to Romanian news websites. The investigation was sparked after a complaint by a disgruntled customer who owes the bank a substantial sum.
The case is being pursued by the national anticorruption agency in the Eastern European country. Romanian government authorities acted following a complaint by a customer who is subject to receivership proceedings and owes Bank Leumi Romania more than a million euros.
The dispute between the customer and the bank centers around whether the bank was authorized to delay the transfer of funds directed to him.
A Bank Leumi spokesman said the case was the result of a long-standing dispute with the customer. "It is the bank's intention to present the lack of good faith of the [customer] to the court, as well as the conduct of the bank and its employees, which was in accordance with all customary rules." The spokesman expressed confidence that the court would side with the bank.
The Romanian probe is just one of an unusual number of investigations into the conduct of Bank Leumi affiliates in a number of countries.
The case in Romania follows another investigation against a Leumi affiliate that is being conducted by American tax authorities. The authorities are investigating suspicions that Bank Leumi Switzerland was involved in tax evasion, allegedly committed by customers of Bank Leumi USA.
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