A banker who was jailed for two years after embezzling almost £400,000 from Morgan Stanley and blowing the cash on a lavish lifestyle including drugs and prostitutes has been ordered to repay only £1.

George Kalmar, 39, had junior employees transfer money between accounts between September 2012 and February 2013 and pocketed the cash.

He blew the money on "adult" entertainment, top restaurants - including Nobu Berkley and Tower Bar and Brasserie in London, the Savoy hotel and prostitutes in London and overseas.

Loading article content

As the vice president of the European Settlement department Kalmar knew how the bank procedures worked.

Suspicion was aroused when it was spotted that sizeable amounts had been transferred between accounts and large single payments of up to and over £70,000 were made to a number of bars and restaurants.

Two employees were sacked and two resigned after Kalmar's crime came to light.

After investigations, Kalmar admitted everything.

Represented by John Scott QC, Kalmar, from Glasgow, pled guilty at Glasgow ­Sheriff Court to embezzling £387,891 and £23,500 by ­transferring money to dormant accounts then transferring it to personal and other accounts.

Passing sentence sheriff John Baird told him: ­"Obviously the only appropriate sentence for this matter is custodial."

Kalmar gave instructions to junior staff to make payments into dormant accounts which was later transferred into his personal accounts or to accounts of associates.

At the court Kalmar was ordered to repay £1.

Ordering him to pay a nominal amount means if any money or assets are uncovered by the Crown, the court can be asked to recalculate the confiscation order.