MILAN (Reuters) – Italy’s tax police said on Tuesday they had searched the headquarters of Oaktree-owned Banca Progetto, which was placed under court administration in a separate case last month, as part of an investigation into alleged fraud involving public funds.
In this latest case, a court in the northern city of Brescia ordered three arrests and the seizure of around 6.7 million euros ($7.3 million) in connection with alleged fraud of public funds, bankruptcy, money-laundering and false corporate communications, the tax police said in a statement.
It did not name the suspects.
Banca Progetto said in a statement it was “an offended party in the affair”, adding it could take “appropriate measures” in case of damage caused by “false and defamatory news” about the probe.
According to the prosecutors, an agent working for Banca Progetto, with the help of a collaborator and the legal representative of a financially troubled company, had allegedly granted state-guaranteed loans to the company.
The loans were obtained by false documentation and modifying the accounts of the company involved, they allege.
During the search of the bank, investigators accessed its organisational model in order to assess its effectiveness in preventing possible fraud offences.
The bank was placed under court administration in October for allegedly lending money to a person arrested under mafia charges.
California-based Oaktree Capital Management first invested in Banca Progetto in 2015, and after looking for years to exit the investment struck a binding deal with Centerbridge Partners in September. ($1 = 0.9179 euros)
(Reporting by Emilio Parodi and Valentina Za, writing by Cristina Carlevaro, editing by Keith Weir)
