Former SBB manager gets 4 years and 7 months for fraud

A former department head at railway company SBB has been sentenced to four years and seven months in prison for defrauding his employer, SRF reports. The 54-year-old was found guilty of multiple counts of breach of fiduciary duty, commercial fraud, money laundering and forgery.

Prosecutors said he set up a scheme to divert money from SBB over several years. In September 2007, he allegedly brought a longtime friend into the scheme, using the friend’s company to submit fictitious invoices to SBB. Two other people and their companies later joined, according to the indictment. The alleged fraud amounted to about 8.7 million francs.

A 15-year statute of limitations means only offences committed from April 1, 2011, onward could be prosecuted, reducing the recoverable loss to about five million francs. SBB is seeking that amount in the case. The company filed a criminal complaint in September 2024, and police arrested the defendant a little over two months later. SBB dismissed him without notice.

Prosecutors had sought an unconditional prison sentence of six years and five months. They also accused him of serious money laundering. Investigators found a prohibited folding knife during a search of his home, leading to a further charge under weapons legislation. Prosecutors said the diverted money helped fund a house in the canton of Solothurn, another in Florida and numerous cars.

At questioning, the defendant said his former wife’s debts had consumed his savings shortly after they married. He said he had also agreed with a friend to a right of first refusal on a house. In court, he acknowledged that he had made a bad decision and said he knew his actions were wrong.