Two More Arrests In K1 Fraud Case

Apr 15 2010 | 1:45pm ET

German police have arrested two more men as part of the investigation into hedge fund K1 Group.

Dieter Frerichs, the managing director of two British Virgin Islands-domiciled K1 hedge funds, and David Zuendorf, who worked at Treukapital Treuhandverwaltung, K1’s administrator, were arrested on Tuesday. Frerichs was apprehended outside of Germany, the Würzburg Prosecutors’ Office said.

The arrests come more than six months after K1 founder Helmut Kiener and two business associates were arrested. Kiener has not yet been charged, but is suspected of fraud and breach of trust. Authorities believe that K1 was a Ponzi scheme that may have cost investors more than €90 million and the fund’s banks and brokers some €300 million.

Kiener was arrested in Germany. The other two picked up in October were arrested in the U.S., charged with money laundering. One of the men, Stefan Suess, is reportedly cooperating with investigators; the other, Thomas Meyer, pleaded not guilty in November.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note