Italy Said to Extend Probe of Activities That Defrauded Paschi

Italy’s finance police are searching premises in cities including Milan and Siena as prosecutors extend a probe into an alleged criminal association that defrauded Banca Monte dei Paschi di Siena SpA, according to two police officials. The police are conducting searches targeting current and former employees of Monte Paschi (BMPS), said the officials, who asked not to be identified because of internal policy. A spokesman for Monte Paschi, Italy’s third-biggest lender, declined to comment. The searches were earlier reported by news agency Ansa. Last week, prosecutors banned eight individuals from traveling outside the country as part of the same investigation. The group allegedly defrauded Monte Paschi through dealings that involved a broker, Enigma, that was based in Milan and London, court filings show. If convicted, members of a criminal association, groups of three or more individuals who conspire to commit more than one crime, would face jail sentences of at least one year for belonging to the group, and longer for any proven crimes. Source :  http://www.bloomberg.com/news/2014-03-05/italy-said-to-extend-probe-of-activities-that-defrauded-paschi.html