• Text size      
  • Send this article to a friend
  • Print this article

Banker told to repay £1 of stolen amount

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.

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.

Contextual targeting label: 
Finance

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.

221124