Wednesday, February 2, 2011

Russian Police Raid Deutsche Bank in Hotel Probe

Russian police raided the Moscow offices of Deutsche Bank AG, Germany’s biggest lender, today as part of a criminal investigation into fraud in the reconstruction of the Hotel Moskva, investigators said.

Officials believe $87.5 million was stolen from a company controlled by the city government, the Investigative Committee in Moscow said on its website today, without detailing Deutsche Bank’s connection to the case.

The probe was to do with “a criminal case on alleged embezzlement during the reconstruction of the Moscow Hotel” that relates to an unnamed client and not to the bank itself, Deutsche Bank said in an e-mailed statement today. “Deutsche Bank continues to operate as normal,” it said.

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