Milan Court sentenced the former head of Central Bank of Italy

On Monday, the court sentenced the former head of Milan's central bank Banca dItalia Italy, Mr Antonio Fazio to three and a half years imprisonment in a scandalous case of trying to acquire the bank Banca Nazionale del Lavoro (BNL) by the Italian insurance group Unipol in 2005. In addition, based on the verdict, Mr Fazio, who headed the Central Bank of Italy from 1993 to 2005, must pay damages to the treasury amounting to 1 million euro.

Scandal surrounding the proposed sale of BNL, which involved many senior bank officials and politicians, erupted in 2005 when it became known that the Central Bank of Italy lobbied the interests of the insurance company Unipol on the sale of BNL. This deal has not been performed and then BNL was purchased by French BNP Paribas.

In addition to the former manager of the Central Bank of Italy, Milan court sentenced the former head of Unipol, Mr Giovanni Consort to three years and ten months of prison and a fine of 1.3 million euro, as well as nine others, each of which received a 3.5 year imprisonment and to pay a fine of 900 thousand euro. Also Milan court ordered the insurance group Unipol to pay a fine of 720,000 euro.

In May 2011 the Court of Milan also acknowledged the former head of the central bank of Italy guilty of fraud in the sale of the bank Banca Antonveneta and sentenced him to four years in prison and fined him 1.5 million euro. This was the first event in the history of Italy, when the court issued a guilty verdict in a criminal case with respect to the head of the Central Bank of the country.

By Irina Lelina for Areti Charidemou & Associates LLC

Areti Charidemou & Associates LLC Law Firm