Data Leak Sheds Light on Hottinger Fraud

Amy Mathews  |

The website just came up recently, detailing a financial scheme used by Fabien Gaglio, an active figure on the French financial market, that has allegedly allowed him to profit based on fraudulent activities. While reports are still unconfirmed, the site also encourages Swiss authorities to look into Gaglio’s profile in more detail and figure out what exactly he’s been doing with the money.

Details of the alleged fraud include Gaglio’s employment at Hottinger & Partners SA, as well as the fact that Gaglio is still to be prosecuted for his actions despite having reportedly been convicted on charges of fraud and money laundering by the Court of Luxembourg two years ago.

This is not the first time Gaglio has been implicated in financial fraud, but it appears that new details are surfacing now compared to the last time the story was popular in the news, which was around one year ago. The sums stolen could amount to over $35 million in total, with their original owners being clients of Hottinger & Partners SA.

It’s worth pointing out that Gaglio has reportedly provided justification for his actions, claiming that he was using the system to transfer money between clients. However, that did not seem to work out too well for him in court, according to previously released reports.

The fraud came up by accident in 2013 when Gaglio’s business partner noticed discrepancies in some of the company’s financial statements. Gaglio allegedly initially claimed that it was all a mistake which he was going to fix soon enough, only to apparently disappear after that, leaving his partner with no contact from his side. And of course, the same treatment was given to HPSA clients who had been wondering about the current status of their money.

Some of the techniques used by Gaglio during his activities allegedly involved forging the signature of at least one of his clients in order to authorize a transfer of funds to another entity controlled by him. The money was then reportedly used on the stock market in ways that are still being analyzed. Many details are missing from the big picture at this point, which is understandable given the scale of the situation. It’s also likely that we’re going to see even more revelations surfacing in the next days or weeks, as the scandal has managed to gain traction once again.

Gaglio has allegedly even admitted to falsifying a large number of documents directly to the Geneva Public Prosecutor, although the exact details of the interview/interrogation remain uncertain. It’s also worth pointing out that everything should be taken with a grain of salt at the moment – including the allegations brought up by the whistleblowing website – as this is a sensitive story that touches on the interests of a large number of people. Hopefully this will at least draw the attention of the proper authorities as the whistleblowers apparently intended, as this will shed some true light on the situation rather than forcing people to discuss allegations and rumors.

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