Banca Carige Former CEO Paolo Fiorentino Sentenced to 4 Years and 50 Euro Fine
The Court of Milan recently made a significant ruling in a case involving Banca Carige. Former CEO Paolo Fiorentino was sentenced to 4 years in prison, a 50 thousand euro fine, and a 5-year disqualification from holding public office. This verdict is a result of market manipulation and false corporate communications relating to the 2018 half-yearly report.
The trial shone a light on alleged accounting and administrative irregularities within the Genoese banking institution. In addition to Fiorentino’s sentence, the Court also fined Banca Carige 700 thousand euros and ordered the defendants to compensate Malacalza Investments, the civil party in the trial, with around 28.6 million euros. The damage caused by this management has left a significant mark on the institution’s stability and financial operations.
The investigation began in Genoa and later moved to Milan, focusing on the failure to communicate necessary write-downs of bad loans, totaling 257 million euros, to the market. The accusations of market manipulation and false corporate communications stemmed from an attempt to downplay losses on the 2018 balance sheet. The ECB had already identified accounting and administrative deficiencies in Carige during an inspection in June 2018.
Fiorentino maintains his innocence and plans to appeal the verdict. While his lawyer asserts his innocence, Malacalza Investments welcomed the ruling. Despite the conviction, Banca Progetto’s board of directors has chosen to retain Fiorentino as CEO, emphasizing the bank’s commitment to transparency and stakeholders.
The future implications of this case and the ongoing legal battle raise questions about Fiorentino’s continued role in the banking sector. Regardless, this ruling marks a significant moment in the Italian banking system’s history.
