Julius Baer expects the ex-banker's sentence to have no impact on US legal issues

FILE PHOTO: The logo of the Swiss private bank Julius Baer at the bank's headquarters in Zurich, Switzerland, 1 February 2017. REUTERS / Arnd Wiegmann / File Photo

ZURICH (Reuters) – The Swiss private bank Julius Baer does not believe that the US's condemnation of one of its former Latin American executives will have an impact on US legal issues.

Baer, ​​Switzerland's third-largest private bank, was charged in 2016 with offering tax evasion to wealthy Americans, resulting in a "deferred prosecution agreement" (DPA) that had to refrain from misconduct for three years to ensure that the charges ultimately took place was rejected.

On Monday, Matthias Krull, 44, German citizen, former Deputy Chairman of Julius Baer Panama, was sentenced to 10 years in prison after pleading guilty in August for his role in a multi-million dollar money laundering program for Venezuelan state oil company PDVSA.

A US court also convicted Krull of $ 50,000, ordering it to lose $ 600,000.

"Mr. Krull is a former employee convicted of indictment in his capacity as a defendant and is not accused of misconduct," said a Julius Baer spokesman on a request.

"The charges against Mr. Krull do not relate to the matters dealt with in the bank's data protection agency, and we have no indication that these events will affect the DPA."

As part of his lawsuit, Krull admitted that he had attracted private clients, particularly from Venezuela, in his position at the Swiss Bank, said the DoJ.

Krull's clients included a suspect charged with fines in the US in August, and three unspecified conspirators described in the indictment, he added.

The DoJ said that Krull has joined a conspiracy to wash $ 1.2 billion of funds embezzled by PDVSA, Florida real estate and cunning false investment plans.

Reporting by Oliver Hirt; Writing by Michael Shields; Editing by David Goodman

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