Italian prosecutors have completed a preliminary investigation into allegations that several local banks colluded with diamond brokers to defraud their customers by selling stones as financial investments at inflated prices, Reuters reported.
In February, Italian financial police seized more than €700 million in assets from UniCredit SpA, Intesa Sanpaolo SpA, Banca Monte dei Paschi di Siena SpA, Banco BPM SpA unit Banca Aletti & C. SpA and two diamond brokers over suspicions that the banks committed fraud, money laundering and used proceeds from diamond sales to increase profits, the news agency noted.
With the exception of Banco BPM, all of the banks involved have begun reimbursing clients by repurchasing the diamonds at their original price, Reuters said. Banco BPM, meanwhile, has acknowledged the difference between the diamonds' fair value and the price paid for them.
Prosecutors reportedly did not indicate whether they would request a trial after they completed the probe.
Former UniCredit country chairman for Italy Gabriele Piccini, who is now a senior manager at Intesa Sanpaolo, was among those under the probe, according to a prosecutor document seen by the news agency.
Remo Taricani, UniCredit's former head of sales and marketing retail, as well as Renato Miraglia, its former head of investment products in Italy, were also investigated, the document showed. Taricani is currently co-head of the bank's commercial banking Italy division.
The number of people under investigation in connection with the allegations had increased to 87 from 68, according to the document.
