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

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...