Liechtenstein Justice Minister Worked For K1

Dec 1 2009 | 1:19pm ET

A senior member of Liechtenstein’s government spent six months on the sales staff of Germany’s K1 Group, whose founder is being investigated for fraud.

Aurelia Frick was a director of K1 Fund Distribution and sat on K1’s board of directors from Aug. 6 through Dec. 29 last year, the principality said today. She resigned after just four months because her questions about the fund of hedge fund group’s activities were not satisfactorily answered, a spokesman said.

K1 Fund Distribution is the London-based sales arm of K1.

Frick has served as foreign, justice and cultural affairs minister for the tiny country since March.

Frick’s is the second governmental link to the K1 scandal: Founder Helmut Kiener, who remains in custody on suspicion of fraud and breach of trust, tried to win his release by claiming he was a diplomatic attaché for the west African nation of Guinea-Bissau.

Kiener may have defrauded K1’s banks and brokers of about US$400 million, according to German prosecutors. Two of his alleged associates were arrested in the U.S. after being nabbed in a money-laundering sting operation.

Like the U.S. and Germany, Liechtenstein is conducting a criminal investigation into K1. The country is also assisting the German probe.

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