Retail brokerage firm MultiBank Group is set to file a legal action against Germany’s Von der Heydt Group. According to business leaders, MultiBank Group paid out German bond holders with funds suspected of being reduced due to some action taken by Von der Heydt Group.
According to the report, the lawsuit against the Vondeheit Group was brought under the premise that the German group was charged with illegally trading mutual funds and that the transaction may have violated the European regulatory framework. The press noted that the practice was illegal under Luxembourg law.
From 2017 to 2020, MultiBank Group and Von der Heydt Group established a joint venture in which the retail brokerage business invested more than 43 million euros. Business leaders allege that VDH Group’s failure to disclose its trading and other investment activities to MultiBank Group and other investors violated German and Luxembourg regulations.
In fact, during the Ponzi fraud investigation, German authorities raided the money custodian’s office in Berlin. The media pointed out that Stephan Blohm, then the CEO of VDH Group in Luxembourg, was identified as the main suspect and charged with criminal charges.
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Separate litigation by BVI
“The VDH Group also did not disclose the adverse results of the investigation confirmed by the Luxembourg Financial Sector Supervisory Commission (CSSF) in a letter of 14 October 2020. Here, CSSF cited 12 serious deficiencies related to fund operation. Auditors with sufficient information and deficiencies in asset valuation fail to comply with anti-terrorism and anti-money laundering laws.”
There is also an allegation that Von der Heydt Group participated as a claimant in a lawsuit against MBF, a subsidiary of the MiltiBank Group, in the British Virgin Islands.
Finance Magnates contacted MultiBank Group to confirm the claims and details of the lawsuit. As we receive responses, we will update this news article accordingly.
Information source: Compiled by FINANCEMAGNATES with 0x information. The copyright belongs to the author and cannot be reproduced without permission.
