Hundreds of investors injured in a “monstrous” corporate crime: The Public Prosecutor’s Office for Business and Corruption (WKStA) accuses an asset manager of serious fraud.
The amounts at stake in a trial that began Monday are staggering. The WKStA accuses a Viennese entrepreneur of serious commercial fraud with a damage amount of 26.5 million euros.
The asset manager, whose private bankruptcy has been filed in the triple-digit millions range, is said to have robbed hundreds of people of their money: “He offered a ‘tax-optimized investment model’ in which initial losses were tax-deductible,” the prosecutor explains. guaranteed initial losses of 200 percent, investors initially received money back from the tax authorities by way of tax equalization.
But the losses were systematic: according to the WKStA, behind the “monstrous construction” lies a scam based on the snowball system. The money from new investors was used to repair the damage done by previous investors. The man and a co-defendant have pleaded “not guilty” and the trial will take months.
Source: Krone
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