Chicago-based PrivateBancorp, which brands itself as a “European-style” private bank, says that employee fraud has prompted an after-tax fou...

Chicago-based PrivateBancorp, which brands itself as a “European-style” private bank, says that employee fraud has prompted an after-tax fourth-quarter charge of $800,000, equivalent to 4 cents a share. In a prepared statement, chief executive Ralph Mandell said that a “long-time, staff-level employee” had “used a sequence of fraudulent transactions over a period of years to misappropriate funds.” Although the company said that no clients were affected by the frauds, it said the employee was currently the subject of a federal investigation. “We are extremely disappointed by this fraudulent conduct, however we are confident this is an isolated incident,” Mr Mandell said. PrivateBancorp markets itself as providing private banking services in the European tradition “to develop lifetime relationships with its clients”. Separately, PrivateBancorp moved the closing date of its acquisition of Piedmont Bancshares to the end of the year.