LOS ANGELES -- The chairman of the board of Wells Fargo Bank Wednesday dismissed as 'preposterous' charges leveled by boxing promoter Harold Smith that top bank officials masterminded a $200 million embezzlement scheme.
Smith, accused by bank officials of embezzling $21 million, told a KABC radio sportscaster that bank officials kidnapped his son and tried to kill him. Smith, who vanished a week ago with his wife and son, said he returned to the United States after fleeing Switzerland 'under gunfire.'
'We find preposterous the statement that high officials of the bank and defalcations amounting to $200 million or more are involved,' Chairman Richard Cooley said from the bank's San Francisco headquarters.
'Based on (our) investigation, we are convinced that the loss of funds involves approximately $21.3 million, and all but $1 million is covered by insurance,' Cooley said.
Smith is chairman of the board of Muhammad Ali Professional Sports, which Ali says paid him a fee for use of his name but over which he has no control.
Ali, who left by plane late Tuesday for Los Angeles, urged the public not to let the controversy tarnish the sport of boxing.
MAPS is promoting a four-bout $8 million boxing card scheduled for Feb. 23 at Madison Square Garden, but the event has been jeopardized by the suit. Ali said he would try to save it.
Wells Fargo Bank has filed a $21 million lawsuit against Smith and several others alleging the money was fraudulently withdrawn through an internal manipulation of funds involving 12 accounts at the Beverly Hills and Santa Monica, Calif., offices.
The FBI, which is investigating the embezzlement scheme, does not yet know how much money was involved, spokesman John Hoos said.
He said investigators 'are going going through the records of the bank to determine the mechanics of the scheme. At this point, we don't even have a figure of the money involved. The $21 million is a bank figure.'
Hoos said the FBI has issued no warrants for the arrest of Smith or anyone else in the case.
A spokesman for the district attorney's office said there were no plans to file charges or seek a grand jury indictment in the case. Spokesman Al Albergate said the office was not investigating the bank theft and would become involved only at the request of the FBI.
Smith told the radio station Tuesday that has been to Geneva and accused the Wells Fargo Bank of fraud, kidnapping and attempted murder. He did not dislcose his whereabouts in the conversation.
'I'm doing all right now that my family is all right,' Smith said. 'I had to leave there under gunfire. They were holding my son for a week, but now that they (Smith's family) are in a safe place, I decided to come back...' He vowed to settle the controversy.
Smith said the embezzlement scheme involved $200 to $300 million over eight or nine years.
'I've learned we're not talking about $21 million, we're talking about $200, $300 million that's going to reach at least 15 bank managers and about 20 different officers in about 20 different banks throughout California for Wells Fargo.'
Smith has a history of taking trips without telling anyone of his whereabouts. He had often said he feared for his life because of threats. This time, there had been unconfirmed reports he was either kidnapped or killed.
Also named in the Wells Fargo suit were Muhammad Ali Pro Sports, Inc.; Sam Marshall, president of MAPS; Louis and Smith Enterprises, Inc.; Harold J. Smith Productions, Inc.; Smith's wife Barbara N. Smith; L. Ben Lewis; his wife Gladys A. Lewis, and Bodak Promotions, Inc.
