ITALY: LAZIO FOOTBALL CLUB PRESIDENT SERGIO CRAGNOTTI IS ARRESTED IN ROME OVER HIS BUSINESS DEALINGS IN THE COLLAPSED FOOD COMPANY, CIRIO.

Record ID: 251352

  • Title: ITALY: LAZIO FOOTBALL CLUB PRESIDENT SERGIO CRAGNOTTI IS ARRESTED IN ROME OVER HIS BUSINESS DEALINGS IN THE COLLAPSED FOOD COMPANY, CIRIO.
  • Date: 11th February 2004
  • Summary: ROME, ITALY (FEBRUARY 11, 2004) (REUTERS - ACCESS ALL) 1. EXTERIOR OF ROME'S REGINA COELI PRISON 2. VARIOUS CARABINIERI OUTSIDE PRISON 3. POLICE CAR ARRIVING AND ARRESTING POLICE OFFICERS GETTING OUT OF CAR 4. CAR ARRIVING WITH SERGIO CRAGNOTTI SEATED IN BACK 5. CAR DRIVING THROUGH PRISON GATES 6. PRISON GATES CLOSING Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 26th February 2004 12:00
  • Keywords:
  • Location: ROME, ITALY
  • Country: Italy
  • Reuters ID: LVAEB8EGFBG3HYOXRL11W63BX1OS
  • Story Text: POLICE ARREST LAZIO PESIDENT SERGIO CRAGNOTTI


    Sergio Cragnotti, Lazio president and former head
    of insolvent food firm Cirio,
    was arrested by Italian police on Wednesday as prosecutors
    named 25 bankers in a probe into the multinational group's
    financial meltdown, judicial sources said.

    Cirio, a household brand for millions of Italians,
    defaulted on more than one billion euros of bonds in late
    2002, an insolvency which has since been dwarfed by the
    multi-billion euro accounting scandal at Italian dairy
    foods giant Parmalat.

    The twin failures of Cirio and Parmalat, which pulled
    the rug from under 165,000 Italian retail investors,
    according to press reports, have increased pressure on
    magistrates to tie up the Cirio inquiry and crack down on
    any fraud.

    Cragnotti is probably more famous around the world as
    the man who put Rome's Lazio
    club on the map. With current England manager Sven Goran
    Eriksson as coach he helped
    steer the club to a Cup Winner Cup triumph in 1999 and the
    Serie A Championship in 2000.

    A lawyer for Cragnotti, arrested at his estate outside
    Rome, called the detention "completely useless" and said it
    was prompted by political and media pressure after
    Parmalat. The accelerated investigation into Cirio has also
    turned up the heat on Italian banks, now under scrutiny for
    their role in the Cirio and Parmalat affairs as well as for
    what critics say were aggressive sales of Argentine bonds
    to retail investors.

    In an arrest warrant obtained by Reuters on Wednesday,
    prosecutors accused Cragnotti of favouring six banks when
    repaying debts, including Banca di Roma, now Capitalia, and
    Swiss bank UBS.

    Capitalia Chairman Cesare Geronzi has already been
    named in a separate aspect of the Cirio probe.

    The transfers, made in 2000-02, were worth just under
    600 million euros in all and also included Banca Popolare
    di Lodi, Mediocredito Centrale, now Capitalia unit MCC,
    Banca Nazionale del Lavoro and Banco di Napoli, now owned
    by Sanpaolo IMI, the warrant said.

    Separately, judicial sources said prosecutors in the
    city of Monza named 25 managers and bank officials in their
    inquiry, including former Banca di Roma Deputy Director
    General Alberto Giovannini, Meliorbanca Chairman
    Pierdomenico Gallo and brokerage Rasfin's Chief Executive
    Roberto Notarbartolo.

    The institutions were not immediately available for
    comment. A judicial source said Cragnotti, also known for his
    stewardship of football club Lazio, was being held at his
    estate outside Rome, waiting to be driven to the capital.

    Lawyer Giulia Bongiorno said Cragnotti had expected the
    arrest "for a while", but questioned its timing.

    "What is the use, more than a year and a half after the
    inquiry began?" Cirio's former chairman was quoted as
    saying. Cragnotti has been investigated for months over
    suspected fraud, false statements to the market and
    criminal bankruptcy.

    Cirio, whose tinned tomatoes and De Rica fruit juices
    still line shelves in many countries, was declared
    insolvent in August and has since been under
    court-appointed administration.

    It has been given a year to sell its assets, allowing
    its factories to continue operating.

    Cragnotti is probably more famous around the world as
    the man who put Rome's Lazio
    club on the map. With current England manager Sven Goran
    Eriksson as coach he helped
    steer the club to a Cup Winner Cup triumph in 1999 and the
    Serie A Championship in 2000.



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