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UBS to Face Accusation in Italy of Helping in $6.6 Million Fraud

UBS to Face Accusation in Italy of Helping in $6.6 Million Fraud

(Bloomberg) -- UBS Group AG’s European unit is under investigation by prosecutors in Milan for allegedly helping an asset-management firm defraud 117 clients of about 6 million euros ($6.6 million), people with knowledge of the matter said.

Sofia Sgr used UBS as an intermediary to deposit and move funds for its clients between 2013 and 2017, the people said, asking not to be identified because the matter isn’t public. Prosecutors completed the first part of the probe this week, and will accuse UBS of hiding the fraud by obstructing authorities and not reporting suspicious operations, according to the people.

Prosecutors may seek indictments after notifying the individuals and firms involved that the investigation is now completed, the people said.

A spokesman for UBS in Italy said the Zurich-based firm doesn’t comment on ongoing legal procedures. Milan-based Sofia Sgr was liquidated after the case became public.

Swiss banks are under scrutiny across Europe, with prosecutors in France, Germany and Italy examining their activities. Last year, UBS faced a tax-evasion case in Italy, while a Paris criminal court ruled that the bank illegally laundered funds by providing French customers with banking services to hide assets from tax authorities.

In an interview with Bloomberg this month, UBS Chairman Axel Weber said his top priority for the coming months is working to reduce a $5 billion fine imposed in the French tax case, which is set for retrial in June.

--With assistance from Marion Halftermeyer.

To contact the reporters on this story: Sonia Sirletti in Milan at ssirletti@bloomberg.net;Daniele Lepido in Milan at dlepido1@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net, Steve Dickson, Daniel Taub

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