Charge against ex-boss: lost 56 million euros in real estate fraud!

Charge against ex-boss: lost 56 million euros in real estate fraud!

In Hanover and Hildesheim, a current case of fraud causes a stir. The former managing director of the German Property Group faces serious allegations that result from the company's shops that cost numerous foreign investors a lot of money. The public prosecutor has now brought charges and accuses him of having committed commercial fraud in 27 cases. The alleged damage amounts to over 56 million euros.

The German Property Group, which was originally founded as Dolphin Capital GmbH, promised investors high returns from investments in German real estate, especially in the renovation of listed buildings. Instead, the promised properties were often left in a desolate state. As a result, many of the investors have lost their money and have to bury their trust in the company.

difficult financial situation

As early as 2015, German Property Group came into financial difficulties, since many of the loans recorded could only be paid for by taking new loans. The situation continued to deteriorate, and at the latest three years later the managing director was said to have known that the renovation attempts had failed. Despite this situation, he continued to collect investor funds, which led to an enormous increase in debt. Ultimately, the company was bankruptcy, which brought the dark machinations and alleged fraud practices to light.

The dimension of the case throws a light on the fragility of investment transactions and the risks that can arise from an inadequate supervision and control in the real estate industry. The situation is an example of how important it is to educate investors about the actual risks of systems and to protect against exaggerated promises. For more information on this topic, Current reporting on www.abendblatt.de .