Banker Linked to Massive Theft in Greece Is Denied Bail in U.S.
A banker and publishing tycoon who is a fugitive from Greece was denied bail Friday after his lawyer argued that a $135-million banking scandal carries political overtones so strong that the man had to flee for fear of his life.
George Koskotas “is a subject of a controversy in Greece which is of cosmic proportions,” said Ron Liebman, a Washington attorney representing the 34-year-old banker.
Koskotas fled Greece on Nov. 6 after being indicted on five counts of fraud and embezzlement alleging that he siphoned more than $135 million from the Bank of Crete, of which he was chairman.
The scandal has embarrassed the government of Prime Minister Andreas Papandreou and prompted the resignations of two government ministers.
Opposition conservatives have charged that Koskotas was allowed to escape so he would not implicate top government officials in illegal financial deals.
U.S. Magistrate Joyce Alexander denied bail after Assistant U.S. Atty. Victor A. Wild argued that bail should not be set in an extradition case and that any flight by Koskotas would have international repercussions. A review hearing was tentatively set for Wednesday.
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