Banker released from custody on euro100 million bail

The heir of one of Austria's wealthiest and most venerable business families was released from jail Friday on euro100 million ($130 million) bail, but some of his countrymen already consider the dynasty's name stained.

Julius Meinl V, the owner of Austria's private Meinl Bank AG, was detained in Vienna late Wednesday on suspicion of offenses including fraud and breach of trust. Among other offenses, he is suspected of defrauding investors through unauthorized share buybacks of the Meinl European Land company, which is now known as Atrium European Real Estate.

"I can confirm his release," said Christian Gneist, a spokesman for a Vienna court connected to the jail where the multimillionaire spent the past two nights. Television images showed him leaving in a taxi.

The 49-year-old Meinl, known for his lavish lifestyle and custom-made suits, comes from an Austrian family that, beginning in 1862, built an empire centered on coffee and other goods considered exotic at the time. Almost 150 years later, the Julius Meinl am Graben delicatessen store in central Vienna sells fine foods from around the world and the Meinl brand has been considered synonymous with quality.

Many Austrians now consider the family's reputation ruined.

The staggering bail, which officials said was paid from a bank account in Liechtenstein, has made headlines here. The tabloid Oesterreich ran a headline that read, "Meinl buys himself freedom for 100 million" and claimed it took just 54 minutes for the money to be transferred Thursday afternoon after a judge ruled that he should remain in investigative custody unless he could come up with the euro100 million bail.

On Thursday, the Austria-based Meinl Bank was quick to point out that the money came from a "private source" - and not from the bank. Meinl was the bank's chief executive until he stepped down in 2007 to become chairman.

Gerhard Jarosch, a spokesman for Vienna's public prosecutor's office, said Meinl, who is a British national, had been detained for fear he might flee to avoid prosecution. Meinl, who owns a private jet, had to give up his passport before being released and must keep authorities informed of his whereabouts.

Herbert Eichenseder, Meinl's lawyer, said his client disputed the allegations against him.

"I suggested to him he should try to relax for the next few days," Eichenseder said in a telephone interview when asked how Meinl handled his brief prison stint. He declined to provide more details.

Meinl has been under investigation for some time. In February, authorities searched at various houses in an attempt to gather evidence.

If convicted, Meinl could face up to 10 years behind bars.

Meinl is not the first prominent Austrian banker to become mired in scandal. In July, the longtime former director of Austria's BAWAG bank, Helmut Elsner, was among nine people convicted of criminal charges in a major fraud case linked to the 2005 collapse of New York-based commodities brokerage Refco Inc.