due to go on trial following preliminary investigations into
derivative losses suffered by the Milan-based leasing firm in
2007.
Milan prosecutors Roberto Pellicano and Giulia Perrotta are
seeking indictment for 11 people involved in the case, including
the lessor’s former CEO, Massimo Faenza, who resigned in June last
year after it emerged the firm faced losses of at least €400
million.
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The 10 others are within the former management team, which had
allegedly built a “parallel structure” in order to steal money from
the company. They are accused of criminal organisation and fraud
concerning the derivative market, and of having stolen at least €25
million from Italease.
Due to go on trial alongside Faenza are Italease’s former deputy
chairman, Roberto Fabbri, and Massimo Sarandrea, the former CEO of
Italeasing, a subsidiary of the group. Several intermediaries are
also due to appear on trial.
The investigation started after evidence emerged that Italease
was likely to be hit by its exposure to derivatives. These
exposures ultimately led to the loss of more than two-thirds of the
company’s market capitalisation.
Several of the company’s managers and intermediaries were
arrested in January 2008. On 11 June, several, including Faenza and
Fabbri, were informed that the investigation into their activities
had ended.
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By GlobalDataThe formal request from the Milan prosecutors only concerns one
part of the case under investigation. Two other investigations,
which deal with money laundering between Austria and Switzerland
and accounting irregularities within the company, are ongoing.
According to sources, some of those being investigated are
seeking to negotiate the size of compensation for the damages with
the “new” Italease, whose management was completely changed after
the derivative scandal was revealed. The new management, led by
Massimo Dazzega, however, has gradually restructured the badly-hit
company. It also tried to secure a JV with VR Leasing, although
talks ended at the end of November.
According to third-quarter results, net losses totalled €222
million, compared with more than €476 million in the same period
last year, while total income amounted to €259 million. Italease
said it planned to revise its industrial plan after talks with VR
Leasing are concluded.
The company recently completed a €500 million securitisation of
residential properties, in which JPMorgan Chase, the US bank, acted
as arranger. The securities will be underwritten by Banca Italease
and used as collateral for refinancing operations through the
European Central Bank.
Antonio Fabrizio
