Indictment reveals the extent of the fraud Ex-Elvetino boss allegedly ripped off SBB

Expense money squandered, luxury vacations booked, friends paid as consultants: the former head of Elvetino was dismissed in 2017. Now it is revealed for the first time exactly what happened.

The former head of Elvetino will have to answer to the Zurich District Court at the beginning of September. The public prosecutor's office accuses him of having generously helped himself to the company's coffers with a whole series of criminal offenses.

SBB dismissed the head of railroad catering with immediate effect in 2017. The media release issued at the time stated that the relationship of trust no longer existed. SBB would not tolerate any breaches of the law or the Code of Conduct.

The indictment for the trial on September 5 shows what was meant by this: according to the indictment, the former head of Elvetino AG, a wholly owned subsidiary of SBB, helped himself generously to the company coffers of the railroad catering service.

The man from Zug has been charged with a whole range of offenses, including mismanagement, embezzlement and fraud. The prosecution will not reveal the sentence it intends to impose on the former company boss until the trial.

The trial was originally due to take place in May, but was canceled at short notice and postponed until September. The now 68-year-old defendant spent a month in custody in spring 2019. He now claims to be a pensioner.

"Potato harvest" as the reason for payment

Shortly after joining Elvetino, he hired an old friend as a consultant. He had completed a commercial apprenticeship and worked as a seaman. As an external logistics consultant, he then charged his client Elvetino a daily rate of CHF 2,500.

This consultant wrote the report on the boss's first 100 days - which, according to the indictment, he should have done himself. Over the years, the friend earned almost one million francs.

In 2015, the then CEO agreed with his long-time friend that the latter should pay him back 20 percent of the fee in future as a "thank you" for the assignments. The consultant gave "potato harvest" or "mango harvest" as the reason for payment. For the public prosecutor's office, these were clearly "kick-backs" and therefore prohibited.

Gastro articles imported from China himself

Together with an old colleague from the handball club, the Elvetino boss also founded a company that imported catering items from China. This company then allegedly sold the items to Elvetino at significantly inflated prices.

These items would not only have been cheaper from other importers, they would also have been usable: According to the indictment, sealing clips, salad tongs and coffee cups turned out not to be food-safe and had to be disposed of.

Truffle trade in Hungary

The former Elvetino boss also used the company money to get involved in the truffle trade in Hungary and set up a foundation for orphans in Uganda, with only the Elvetino boss and his old consultant friend sitting on the foundation board.

He also increased his own salary, squandered vast sums of money on expenses and took private luxury trips with his partner. His long-time friend, who worked as a consultant for Elvetino, and his colleague from his handball days, with whom he founded the import company for Chinese catering products, will also stand trial on September 5.

SDA