A German court has appoint an administrator to oversee the assets of accused hedge fund fraudster Helmut Kiener.
Preliminary insolvency proceedings against the K1 Group founder were initiated late last month, just days after Kiener was charged with defrauding investors, banks and brokers of €345 million. The judge overseeing those proceedings, Jürgen Roth, said the move was made at the request of a creditor, an unidentified health insurer.
"We have requested a statement of assets from him, but I decided to appoint an independent administrator to review the situation," Roth told Bloomberg News. "In a case with these dimensions, that's advisable to make sure all the assets are covered."
Kiener, who has been jailed since his arrest last October on suspicion of fraud, was charged last month with 86 counts of forgery, 35 counts of aggravated fraud and one count of tax evasion. A total of eight people have been arrested in the K1 case in Germany and the U.S.
According to prosecutors, Kiener and K1 ripped off some 5,000 investors as well as its banks, Barclays and BNP Paribas. Kiener denies all of the allegations, and said he will "expose how greedy" his clients were during his trial.