Thursday's issue of the Austrian Standard newspaper reports that prosecutors in Klagenfurt have decided to expand an investigation in the Hypo Alpe Adria Group to include retired Croatian general Vladimir Zagorec and Slovenian businessman Miro Oblak, the Austrian news agency APA reported on Wednesday.
Prosecutors are currently investigating allegations about the involvement of Zagorec and Oblak in embezzlement and the investigation is likely to be expanded to include allegations of fraud, the spokesman for the Carinthia Public Attorney's Office, Helmut Jamnig, was quoted as saying.
The daily reports that Zagorec is suspected of having made a deal with former Hypo Group CEO Guenther Striedinger to obtain loans for financing construction projects in Croatia, even though he did not meet the necessary criteria.
In 2009 the Zagreb County Court sentenced Zagorec, a former Assistant Defence Minister, to seven years in prison for taking USD 5 million in jewels from a Defence Ministry safe when leaving his post in 2000. This January, the Supreme Court upheld the county court's ruling. Zagorec is currently in custody and on trial for an unlawful renovation of a summer house belonging to former Zagreb City Assembly vice president Antun Sporer.
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