Russian Banker Wanted for Fraud Detained by Austrian Police

Austrian authorities detained Alexander Gitelson, a Russian banker wanted in Russia for fraud.

Police arrested Gitelson on April 12 at his home in Lower Austria, a province outside of Vienna, said Mario Hejl, a spokesman for the Austrian Federal Crime Agency. Gitelson, the former owner of the Bank of East-European Finance Corp., was sentenced to 5 years in jail by a Russian court in June 2011, he said.

The 63-year-old banker, who is wanted by St. Petersburg prosecutors, “is in detention waiting for extradition,” Hejl said today in a telephone interview. Gitelson will be held in Vienna until a formal request for extradition to Russia has been received, said Dagmar Albegger, a spokeswoman for Austria’s justice ministry.

Gitelson’s lawyers didn’t immediately return phone calls and a message seeking comment. Gitelson is suspected of major fraud involving state funds and has been investigated in several cases, according to the Russian Legal Information Agency.

Before it's here, it's on the Bloomberg Terminal.