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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

The London Whale saga is a twist on the typical rogue trader story as the rogue trader recognized the error of his ways and was prepared to take his medicine but was instructed by superiors to “defe...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.