Federal Court Denies Bail to Fugitive Greek Banker

BOSTON — A fugitive Greek banker, indicted in a financial scandal that has rocked the Greek government, was ordered held without bail today by a federal magistrate.

George Koskotas, 34, was arrested by FBI agents when he arrived in this country Wednesday night by private Lear jet and has been held since at a federal lock-up in the Boston area.

At a hearing this morning, his attorney asked for his release so that he could help prepare a defense against extradition to face charges that he embezzled $135 million from the Bank of Crete.

Assistant U.S. Atty. Victor A. Wild argued against bail, saying that if Koskotas fled the United States, there would be international repercussions.

Magistrate Joyce Alexander, in denying bail, did not say where Koskotas would be held.

The banker was arrested when he arrived from Bermuda at Hanscom Field in Bedford, about 15 miles west of Boston.

Koskotas had been in Brazil with his wife and five children but decided to leave because he believed that Greek assailants had tracked him down and planned to kill him and his family, according to Koskotas’ lawyer, Ron Leibman of Washington.

Koskotas fled his homeland Nov. 6 after being indicted on five counts of fraud and embezzlement of bank funds.

The Koskotas scandal has embarrassed the government of Premier Andreas Papandreou and prompted the resignations of two ministers. Opposition conservatives have charged that Koskotas was allowed to escape so that he would not implicate top government officials in illegal financial deals.