Thursday, 31 July 2014
Last updated 1 hour ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…