Italy Court Sets Free Fastweb Founder On Trial For Fraud
February 24 2011 - 6:00AM
Dow Jones News
A Rome court Thursday revoked a house arrest order for Silvio
Scaglia, the billionaire and Fastweb SpA (FWB.MI) founder standing
trial in an alleged EUR2 billion money-laundering and tax-fraud
scheme.
The court set Scaglia free after getting the consent of the
public prosecutor's office, which accuses Scaglia of criminal
conspiracy to commit tax fraud, according to a statement by
Scaglia.
He expressed relief at being set free after a year of being held
in prison and kept under house arrest. He also insisted on his
innocence.
"I trust the Italian administration of justice," he said. "I
believe that I will demonstrate my innocence during the on-going
trial."
Prosecutors accuse Scaglia and other former executives of
Fastweb and Sparkle, a cable unit of Telecom Italia SpA (TIT.MI),
of being aware of the purchase and sale of EUR2 billion of services
using phony companies.
The alleged practice allowed Fastweb and Sparkle to reap as much
as 400 million euros in tax credits, they say.
Fastweb and Telecom Italia have denied any wrongdoing, saying
they are victims of a fraud.
In addition to Scaglia, 35 other suspects are on trial.
Scaglia launched e.Biscom, as Fastweb was formerly known, in
1999, bringing high-speed Internet services to Italy. He served as
Fastweb's chief executive until 2003 and as chairman until 2007,
when Swisscom AG (SCMN.VX) acquired the company.
-Gilles Castonguay, Dow Jones Newswires; +39 02 5821-9908;
gilles.castonguay@dowjones.com
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