Zurich Millionaire Claims SFr44 Million in Damages Against Citibank

Stephen Harris

19 December 2006

Zurich-based reclusive self-made German millionaire, Peter Mikutta, has filed papers claiming SFr44 million in damages against Citibank for dereliction of its fiduciary duties, according to a report in the Financial Times. Mr Mikutta’s lawyers claim that the US bank had allowed him to be defrauded by failing to check movements on his account. In a separate, but linked, criminal case, Zurich public prosecutors are accusing a former Citibank employee, who subsequently worked for Mr Mikutta, of fraud and falsifying documents, including forging Mr Mikutta’s signature on documents to divert funds from his account for her own use, amounting to SFr114 million. Mr Mikutta did not notice that his account was being depleted because he was given periodic performance data but still argues the bank was largely to blame for allowing the transfers to occur. It is alleged the transfers were approved because the former employee knew the bank’s internal procedures and abused her influence and former position as an account manager. She also regularly threatened to move the account – allegedly Citibank’s largest at the time – to another bank if her requests were not met, according to the report.