Sunday, 29 May 2016
Last updated 1 day ago
Nov 8 2010 | 11:22am ET
More than a year after his arrest on suspicion of fraud, the founder of hedge fund K1 Group may finally be charged.
Helmut Kiener, who has been in custody since his arrest last October, may be charged this week or next, Bloomberg News reports. The investigation into the alleged Ponzi scheme, which may have cost investors and K1's banks and brokers almost €400 million, is nearing completion, a spokesman for the Würzburg, Germany, prosecutor's office.
"The exact amount of damage the scheme caused will be disclosed once we file the charges," Dietrich Geuder told Bloomberg. "We will also say then whether other suspects will be indicted."
Germany has also arrested David Zuendorf of K1's administrator, Treukapital Treubandverwaltung. In addition, two Kiener associates have been arrested in the U.S., and Dieter Frerichs, a former managing director of two K1 funds, committed suicide in July to avoid arrest.
Kiener has consistently denied the allegations.