Swiss banker held in $11.9m probe

BASEL, Switzerland -- A Swiss banker has been arrested on suspicion of embezzling 20 million francs ($11.9m), The Associated Press reports.

Authorities said the man, a branch vice-director of Swiss banking giant UBS, was arrested along with a French client.

Markus Melzl, spokesman for the Basel cantonal (state) prosecutor's office, refused to name either man, AP said.

The agency said officials had confirmed reports in the daily Tagesanzeiger that the arrested banker was vice-director of private banking at a UBS branch in the northern Swiss city of Basel.

UBS spokesman Christoph Meier said the banker was arrested December 21 after UBS made a criminal complaint against him, AP said.

Audit staff raised the alarm in mid-December, he said.

Meier said the banker was suspected of embezzling the money from other clients and paying it to the French client, who used it to purchase paintings and sculptures. The banker was fired immediately, said Meier.

UBS -- Switzerland's largest bank -- would cover any losses to clients, said Meier.

Melzl said Basel prosecuting authorities were still investigating the "bizarre" case.