A Swiss court found ex-Morgan Stanley banker Pavlos Bailas guilty of qualified money laundering over a kickback of about CHF50 million from arms sales arranged by Greece's former Defense Minister Akis Tsohatzopoulos, Bloomberg News reported.
Bailas was sentenced by the Swiss Federal Criminal Court to 15 months in jail for laundering the funds between 1999 and 2012, but was acquitted on a separate charge of embezzlement, according to the Oct. 15 report. Bailas was also given a CHF250,000 conditional fine and a 15-month suspended sentence, while his prison term will be reduced by the 348 days that he has already spent in custody.
In 2013, a Greek court found Tsohatzopoulos guilty of misappropriating millions of euros from arms purchases for Greece's armed forces, the news agency noted. An appeals court upheld the verdict in 2017, but Tsohatzopoulos was released from jail in July 2018 due to poor health.