Proceedings to be started against the implicated party by the Commission.
A 65-year-old former property developer stands trial in Hildesheim Regional Court, accused of defrauding investors of approximately €56 million. The accused, the former head of an immovable property firm, allegedly concealed the company's insolvency and accepted further loans from investors, as outlined in the indictment. The trial has commenced, and the defendant began his testimony on Tuesday, according to court officials.
The court has agreed to a sentencing range of six years and nine months to seven years and three months for the defendant, should he offer a credible confession in the main charge complex. The trial will continue until August, with the evidence still being presented to verify the defendant's statements.
Founded and led by the defendant, the company specialized in the restoration and sale of heritage-protected properties. It financed its operations through loans from investors, initially obtaining capital through intermediaries, later also from institutional investors.
According to the indictment, the company faced financial difficulties due to escalating costs and project delays starting from 2015. In an effort to settle debts, the company took on new loans, but restructuring attempts by external consultants failed to stem the growing debt.
It is alleged that the defendant had knowledge of the company's impending failure and insolvency as early as mid-2018. Despite this, he continued to raise funds from investors for approximately another year, culminating in losses of approximately €56 million. He now faces 27 counts of fraud.
Financial fraud cases generally involve complex schemes where individuals or companies deceive investors, who endure significant financial losses. Such cases may involve violations of securities laws. In this trial, the defendant is charged under various securities laws, requiring companies to disclose material information and prohibiting fraudulent activities in securities transactions.
Sources: ntv.de, AFP.
The community policy, as well as the employment policy of the company in question, might be under scrutiny due to the alleged deception of investors by the former head of the company. This business, a property firm specializing in the restoration and sale of heritage-protected properties, primarily financed its operations through loans from various investors.
The accused is facing charges under general-news and crime-and-justice categories, as the case involves significant financial losses to investors. It is also relevant to consider whether the company's financial issues were adequately reported in any financial news spheres.
