Prosecutors Seek More Than 12 Years For K1 Founder

Jul 21 2011 | 1:44pm ET

Hedge fund fraudster Helmut Kiener should spend almost 13 years in prison for defrauding his banks and investors of €345 million, German prosecutors have said.

Kiener, the founder of the K1 Group hedge fund, confessed to running a Ponzi scheme in April, after a year-and-a-half of denials and threats. He is to be sentenced in Würzburg tomorrow.

Prosecutors have asked the court to impose a 12-year-and-nine-month sentence, close to the maximum of 15 years. Kiener's lawyers told Reuters that they are seeking a verdict with a "significantly" shorter sentence.

Kiener is accused of forgery, aggravated fraud and tax evasion. According to prosecutors, he ripped off some 5,000 K1 investors as well as its banks, Barclays and BNP Paribas.

Kiener's co-defendant, K1's accountant, is also seeking leniency: He's asking for two years and 10 months, while prosecutors are seeking four-and-a-half years in prison.

Kiener and his accountant are two of eight people arrested in the case.


In Depth

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    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…

Publisher's Note