An Austrian court has found a former Croatian general guilty of embezzling millions of euros and sentenced him and an associate to two years in prison.

The court in the southern city of Klagenfurt determined Wednesday that the ex-general, Vladimir Zagorec, and Guenter Striedinger were involved in diverting loans from the now-defunct Hypo Alpe Adria Bank. Striedinger was a bank board member.

Judge Michaele Sanin said the damages caused by the two amounted to over 17 million euros ( $18 million.)

The bank was nationalized to prevent bankruptcy in 2009 and its assets are being sold to pay off creditors.

Lawyers for both men say they are appealing the verdict and sentence.

A third man whom the court did not name also was found guilty and given a suspended prison term.