Former Chicago Bulls star Toni Kukoc has filed a lawsuit against a Swiss bank, accusing them of allowing his former financial advisor and personal banker to siphon off more than $11 million from Kukoc’s Swiss bank accounts.
The lawsuit was filed against Banca Svizzera Italiana, of Lugano, Switzerland, and EFG International AG, of Zurich, Switzerland. According to the complaint, EFG acquired BSI in 2016.
The lawsuit centers on allegations pertaining to fraud allegedly perpetrated against Kukoc by Kukoc’s longtime“’friend’ and financial advisor,” identified in the complaint as Paolo Banfi, and a personal banker at BSI, identified as Paolo Zola.
Kukoc, originally of Croatia, joined the Chicago Bulls in 1993, after years of high-level success in European basketball.
Kukoc became a mainstay on the team, and was one of the stars, along with Michael Jordan and Scottie Pippen, who helped lead the team to its second “threepeat,” winning three NBA titles from 1996-1998.
He departed the Bulls in 1999, but continued to play in the NBA for the Philadelphia 76ers, Atlanta Hawks and Milwaukee Bucks until 2005.
He currently serves as an advisor to Chicago Bulls owner Jerry Reinsdorf, and resides in suburban Highland Park.
According to the lawsuit, he became friends with Banfi in 1991, when Banfi became his financial advisor.
However, the lawsuit asserts that beginning in 2004, Banfi and Zola allegedly began working together to “raid” millions of dollars from Kukoc’s bank accounts.
According to the complaint, Zola and Banfi allegedly took out a mortgage, worth more than $7.5 million, in Kukoc’s name, and purportedly used the proceeds to support a hotel project in Switzerland. According to the complaint, the pair allegedly forged Kukoc’s signature on the mortgage documents.
According to the complaint, Banfi allegedly misled Kukoc into believing the funds were for a hotel Kukoc was opening. Instead, the proceeds allegedly went to a different hotel project, allegedly to benefit Banfi.
Further, the complaint alleges Zola allegedly falsely claimed he was physically with Kukoc in Chicago when Kukoc allegedly signed the mortgage documents. According to the complaint, Kukoc never met with Zola in Chicago at any time.
Then, the complaint alleges, Banfi and Zola allegedly “worked together to execute a series of unauthorized money transfers in which millions more dollars were transferred from Kukoc’s BSI accounts into Banfi’s pockets,” without Kukoc’s knowledge or authorization.
According to the complaint, the two allegedly pushed through more than 300 money transfers, even though Kukoc allegedly put in place protections requiring two authorized signatures for any such transfers.
Neither Banfi nor Zola are named as defendants in the action.
Instead, the complaint asserts EFG, as Zola’s employer, should be held liable for allegedly failing to stop Zola and Banfi from engaging in the alleged fraud.
“Banfi’s scheme to defraud Kukoc would not have been possible without knowing and substantial assistance from BSI and Zola,” the complaint said. Indeed, as Kukoc’s personal banker at BSI, Zola had to approve and authorize every instance in which Banfi personally enriched himself with money from Kukoc’s BSI accounts.”
Kukoc added: “As a result of BSI’s knowing participation in Banfi’s fraud and misappropriation and BSI’s breach of duties to its customer, Kukoc lost millions of dollars that he has been unable to recover through Swiss authorities.”
The complaint levels counts of aiding and abetting fraud; aiding and abetting civil theft; and aiding and abetting breach of fiduciary duty; and breach of contract, against BSI and EFG, as its successor.
According to the complaint, Kukoc allegedly learned of the alleged fraudulent activities in 2014. But he asserts that because of Swiss debt enforcement procedures, his claims should still be allowed in U.S. courts until September 2023.
Kukoc is seeking unspecified compensatory damages from EFG, at least equal to the value of the money that was allegedly misappropriated from Kukoc’s BSI accounts from 2004-2007.