Ex-Hypo Alpe CEO’s Jail Sentence Upheld by Austria’s Top CourtBoris Groendahl
Austria’s top court upheld a 3 ½-year jail sentence against Wolfgang Kulterer, the former head of Hypo Alpe-Adria-Bank International AG, in a case over charges he improperly loaned investors money for a 2004 share sale.
Verdicts against another board member, Guenter Striedinger, a lawyer and a tax consultant in the case, were also upheld, the court said on its website. The ruling means that Kulterer will have to begin serving his sentence after he is contacted by prison officials.
Austria, which nationalized Hypo Alpe in 2009 to avoid its collapse under bad loans, has sought to prosecute former managers it found responsible for the losses. A number of other cases against Kulterer and other Hypo Alpe managers are still pending in Austrian courts.
Kulterer’s lawyer Ferdinand Lanker didn’t immediately return a call to his office seeking a comment. Kulterer pleaded guilty in a separate case in 2008 to false accounting to hide swaps losses at Hypo Alpe while he was chief executive officer.