(Bloomberg) -- Lazard Ltd. faces a probe in Germany after the court that convicted a former employee of insider dealing said the bank made it easy for him to commit his crimes.
Frankfurt prosecutors are looking into whether Lazard violated its duties to properly supervise its operations in Germany, a spokeswoman for the agency said by email Thursday.
The probe follows last month's comments from a judge when delivering the verdict against the ex-banker and a co-defendant who used the information generating gains of 8.5 million euros ($9.4 million). The judge said that poor safety procedures at the bank allowed its then-employee to even access information on deals he wasn't working on.
The ex-Lazard banker admitted his action and got a suspended term. His co-defendant, who kept the bulk of the profit and fought the charges, was sentenced to three years and eight months in jail. He has appealed.
Spokeswomen for Lazard didn't immediately reply to an email seeking comment.
The former banker worked at the lender's merger unit in Frankfurt. The two men bet that shares of targets in the deals would rise once those opinions became public. The transactions include the takeover bid by Carlyle Group Inc. and Bain Capital for Osram Licht AG in 2018 and KKR & Co.'s investment offer to Axel Springer SE, according to the court's findings.
Frankfurt prosecutors are also still probing two additional individuals in the case but declined to provide any details about these suspect.
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