Deutsche Bank Accused of Hiding Securities Losses

Former employee tells SEC the bank misrepresented portfolio’s value from 2007 to 2010.

Eric Ben-Artzi, a former quantitative risk analyst for Deutsche Bank AG, alleged that Europe’s biggest lender engaged in a multibillion-dollar securities violation. Deutsche Bank denied the allegation.

Ben-Artzi, who is suing the company for wrongful dismissal, told the U.S. Securities and Exchange Commission that from 2007 to 2010 the bank misrepresented the value of a portfolio with a notional value of as much as $130 billion, Labaton Sucharow LLP, the New York-based law firm representing Ben-Artzi, said on its website yesterday.

‘Wholly Unfounded’

“The allegations of financial misstatements, which are more than 2 1/2 years-old and were publicly reported in June 2011, have been the subject of a careful and thorough investigation, and they are wholly unfounded,” Calabro, the Deutsche Bank spokeswoman, said. “Moreover, the investigation revealed that these allegations stem from people without personal knowledge of, or responsibility for, key facts and information.”

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