Damn, This is Heavy

A man in the process of breaking up with his wife, and alleged that she was involved with laundering money transfers to Switzerland, and the bank got him committed to a mental hospital for ten years:

A German man committed to a high-security psychiatric hospital after being accused of fabricating a story of money-laundering activities at a major bank is to have his case reviewed after evidence has emerged proving the validity of his claims.

In a plot worthy of a crime blockbuster, Gustl Mollath, 56, was submitted to the secure unit of a psychiatric hospital seven years ago after court experts diagnosed him with paranoid personality disorder following his claims that staff at the Hypo Vereinsbank (HVB) – including his wife, then an assets consultant at HVB – had been illegally smuggling large sums of money into Switzerland.

Mollath was tried in 2006 after his ex-wife accused him of causing her physical harm. He denied the charges, claiming she was trying to sully his name in the light of the evidence he allegedly had against her. He was admitted to the clinic, where he has remained against his will ever since.

But recent evidence brought to the attention of state prosecutors shows that money-laundering activities were indeed practiced over several years by members of staff at the Munich-based bank, the sixth-largest private financial institute in Germany, as detailed in an internal audit report carried out by the bank in 2003. The report, which has now been posted online, detailed illegal activities including money-laundering and aiding tax evasion. A number of employees, including Mollath's wife, were subsequently sacked following the bank's investigation.

………

Asked why the bank kept the report to itself and did not approach the authorities, the spokeswoman added: "In 2003 HVB initiated extensive investigations via internal audits in response to information provided by Mr Mollath on transactions that had taken place a long time before … It was determined that employees had acted contrary to their instructions regarding Swiss banking transactions".

But while the findings, it said, had resulted in sackings, the audit "did not produce sufficient evidence indicating criminal conduct … that would have made a criminal charge seem appropriate".

If you believe that the banks had nothing to do with his commitment, you are naive.

This is Bavaria, the heart of the German right wing, and doing the banks' bidding is pretty much a requirement for civil servants there, so I have no doubt that Hypo Vereinsbank decided to act like Stalin's NKVD.

H/t Naked Capitalism.