His alibi is not to con Crete
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This is a digitised version of an article from The Cayman Compass's print archive. Occasionally, the digitisation process introduces transcription errors, or other problems.
See the article in its original context from November 1988.
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George Koskotas was sued by the Greek-based bank at federal court in Manhattan "to recover its stolen funds, some of which are in New York," according to court papers. Earlier this month, the 34-year-old Koskotas fled Greece where he had been indicted on five counts of fraud and embezzlement alleging he siphoned more than $135 million from the Bank of Crete.
The scandal has embarrassed the government of Premier Andreas Papandreou and prompted the resignations of two government ministers.
Koskotas, who had been ordered to remain in Greece during the investigation, was arrested last Wednesday by FBI agents after arriving in a private jet at an airfield about 15 miles (24 kilometers) west of Boston.
Koskotas' lawyer, Ron Liebman, has said his client came to the United States from Brazil for his own safety. But Liebman could not immediately be reached to comment on the civil suit.
Also named in the bank's lawsuit were Koskotas' wife, Kathy, a naturalized US citizen; and his brother, Stavros Koskotas, a Greek citizen.
In Boston on Monday, Assistant US Attorney Victor A. Wild said Koskotas remained jailed without bail pending extradition proceedings. Wild would not comment on the whereabouts of Mrs. Koskotas.
Court papers claimed Stavros Koskotas and his family disappeared from Greece "and have been reported to be in Colombia."
According to court papers in New York, the lawsuit was brought at the direction of Spyros Papadatos, temporary commissioner appointed by the Greek government to investigate the case in Greece.
Papadatos alleged in a report last week that Koskotas used bank money to make $200 million in loans without collateral and buy gifts for soccer clubs, athletes, business associates, journalists and friends.
