George Koskotas

George Koskotas
Born	(1954-10-05) October 5, 1954 Aspropyrgos, Greece
Occupation(s)	Banker, publisher
Known for	Koskotas scandal

George Koskotas (; born 5 October 1954 in Aspropyrgos) is a former Greek banker and publisher whose emergence as a media tycoon during the 1980s sparked the Koskotas scandal, a major financial controversy that ultimately contributed to the downfall of the PASOK administration in 1989.

Early life

Originating from Aspropyrgos, Greece, Koskotas relocated to the United States in 1970, where he was employed in his father's house painting enterprise located in Queens, New York until 1979. In 1980, he faced charges for defrauding both the Internal Revenue Service and New York State unemployment office of $41,000 by submitting fraudulent unemployment claims. He was apprehended in 1987 at a convention for newspaper editors held in Washington D.C., after which he posted bail amounting to $1 million and returned to Greece.

"Koskotas scandal": Bank of Crete

Koskotas’s career at the Bank of Crete began in 1979 as an administrative officer, progressing to an accountant position at its Athens branch between 1982 and 1984. Subsequent investigations uncovered that he had misappropriated $210 million from the bank, funds he utilized to strengthen his control over the institution and to diversify into publishing by acquiring two daily newspapers, five magazines, a radio station, and purchasing Olympiacos F.C.. Under his direction, the Bank of Crete expanded to become Greece’s second largest banking institution.

Following his arrest in the United States for previous offenses, Koskotas accused Prime Minister Andreas Papandreou of orchestrating state enterprises to funnel deposits into the bank and accepting kickbacks from the embezzled funds. These claims triggered resignations among government ministers and initiated demands for a vote of no confidence. In 1989, a parliamentary tribunal found two former cabinet ministers guilty in connection with the scandal. Papandreou himself was acquitted by the Supreme Court in 1992 by a narrow decision.

Indictment and arrest in the United States

On October 20, 1988, Koskotas faced indictment on five charges including forgery and embezzlement, leading to his suspension as chairman of the bank. On November 7, he evaded a 24-hour security detail stationed at his residence and escaped with his wife and five children to Switzerland. The family subsequently traveled to Rio de Janeiro. On November 24, agents from the Federal Bureau of Investigation detained Koskotas and his family at Bedford, Massachusetts following their arrival via private jet at Hanscom Field. Initially incarcerated at Essex County Correctional Institution in Salem, Massachusetts, he was later transferred to Federal Correctional Institution, Danbury in Danbury, Connecticut.

Koskotas challenged his extradition on grounds of political persecution and threats to his safety if returned to Greece. Nonetheless, on August 24, 1989, U.S. magistrate Joyce Alexander ordered his extradition. This ruling was affirmed by U.S. district court judge Douglas Woodlock on June 27, 1990.

Conviction and parole

In January 1992, Koskotas was found guilty of forgery and sentenced to five years imprisonment. Subsequently, in November 1994, he received a combined sentence of 25 years for embezzlement and forgery offenses. After serving twelve years behind bars, he was granted parole on March 16, 2001. Following his release, Koskotas was prohibited from leaving Greece and mandated to report twice monthly to an Athens police station.