• Germany edition
 
Police bust massive property fraud scheme
Photo: DPA

Police bust massive property fraud scheme

Published: 20 Feb 2013 08:05 GMT+01:00
Updated: 20 Feb 2013 08:05 GMT+01:00

"About 1,200 investigators and 15 prosecutors carried out 130 searches and seized assets worth more than €100 million, as well as issued arrest warrants against the six allegedly responsible, aged between 33 and 70," the prosecutor's office said in a statement released late on Tuesday.

The sums swindled involved reached hundreds of millions of euros, the office said.

The operation was carried out across seven regional states, including Hamburg and Bavaria, and 50 people are suspected of involvement.

The prosecutors said police had been investigating a Frankfurt-based company since mid-2012, which the German news agency DPA identified as real estate firm S&K Sachwert.

The company is alleged to have partnered with hundreds of other firms as part of a Ponzi-style fraud scheme, a style of financial subterfuge made famous by US investor Bernard Madoff at the height of the financial crisis.

According to media reports, the company promised investors 12 percent profits on real estate investments, which were then diverted to finance the lavish lifestyles of company executives or pay back the first wave of investment victims.

AFP/mry

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

12:36 February 20, 2013 by pepsionice
Ten years ago....there were enough naive Germans to believe in a hefty return on their investments. I think most have woke up and the minute you do a presentation, and start to guarantee results....they start to smile, call the authorities, and just sit back.
17:10 April 16, 2013 by emilchong
While most Germans may be vigilant, there may be a lot of naive investors overseas who may not be so aware. Is there a a website where I can find out about whether similar property scams have been exported from Germany to other countries? Thank you.
Today's headlines
Hamburg could take infected Ebola doctor
Liberian health workers in protective clothing bury an Ebola victim in early July. Photo: DPA

Hamburg could take infected Ebola doctor

A World Health Organisation doctor infected with the deadly Ebola virus while trying to help stop it spreading through West Africa could travel to a Hamburg clinic for treatment. READ  

Germany evacuates embassy in Libya
Black smoke billowing from a storage depot of fuel that was hit by a rocket the night before near the airport in Tripoli on July 28th. Photo: EPA/SABRI ELMHEDWI

Germany evacuates embassy in Libya

UPDATE: Germany pulled its embassy staff out of Tripoli on Monday, a day after advising all its citizens currently in Libya to leave the strife-torn country immediately. READ  

Police kill fleeing drug dealer with bad shot
Photo: DPA

Police kill fleeing drug dealer with bad shot

A policeman is being investigated for manslaughter after he shot a fleeing man, wanted on drug charges, in the back of the head. The officer claimed he had aimed for his legs. READ  

Germany's students fail to graduate in time
A German student protests against the Bologna reforms in Mainz in 2010. Photo: DPA

Germany's students fail to graduate in time

Leaked figures show the average student in Germany still takes around four years to complete a bachelor's degree, suggesting controversial reforms to higher education have so far failed to cut down the number of Germany's perpetual students. READ  

Lawmakers earn millions on the side
Bavarian lawmaker Peter Gauweiler made almost €1 million on the side. Photo: DPA

Lawmakers earn millions on the side

A quarter of all politicians in the German Parliament are making additional income on top of their parliamentary salary, a transparency group said on Saturday. Thirteen lawmakers have made more than €100,000 in the last few months. READ  

Schweinsteiger sorry for holiday video
Schweinsteiger has apologized after the video of him on holiday was posted on YouTube. Photo: DPA

Schweinsteiger sorry for holiday video

UPDATE: Germany’s World Cup winning star Bastian Schweinsteiger has apologized after a video emerged of him on YouTube leading a chant insulting Borussia Dortmund supporters and players. READ  

Sale stopped of oldest message in a bottle
Konrad Fischer with his find. Photo: DPA

Sale stopped of oldest message in a bottle

UPDATE: A fisherman who found the world's oldest message in a bottle tossed into the sea in northern Germany has failed in his attempt to sell it on eBay. The auction was stopped at the last minute. READ  

JobTalk Germany
Job seekers frustrated with application wait
Photo: DPA

Job seekers frustrated with application wait

A new YouGov survey shows job seekers in Germany are exasperated with the application process, complaining about poor job adverts and slow responses. Recruiters agree. READ  

Germany's biggest tabloid attacks Islam
Bild editor-in-chief Kai Diekmann said there was no room for such comments in Bild publications but stopped short of an apology. Photo: DPA

Germany's biggest tabloid attacks Islam

Germany's biggest newspaper, Bild, was forced to climb down over the weekend after a highly critical and controversial comment piece which attacked Islam as a barrier to integration appeared in its Sunday sister paper. READ  

Weather warning for stormy Berlin
Photo: DPA

Weather warning for stormy Berlin

Forecasters have put out a weather warning for Berlin and much of Brandenburg with thunderstorms and heavy rain set to bring an end to the heatwave. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: Bundesarchiv/Bild 183-S45825
Culture
Germany puts 700,000 WWI docs online
Photo: DPA
Society
This man wants to give all of us €12,000 a year
Photo: DPA
Education
Top university switches master's courses to English
instagram.com/gotzemario
Gallery
Germany's World Cup stars share their holiday photos
Travel
Plans unveiled for bike trail along former Iron Curtain
Photo: DPA
Sport
Yoga helped Jogi's boys bring World Cup home
Photo: DPA
National
Pressure on police over anti-Semitic protests
Photo: DPA
Gallery
The Local List: 12 best words in German
Photo: DPA
Politics
View from Germany: 'Nobody will win in an economic war with Russia'
Photo: DPA
Gallery
German Bucket List: How many of these can you tick off?
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Photo: Shutterstock
Features
Some of the most embarrassing mistakes you can make in German
Education
Raising the bar for law & business in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Sponsored Article
Bilingual school turning education on its head
Sponsored Article
CurrencyFair: Why it pays when making overseas transfers
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,219
jobs available
Toytown Germany
Germany's English-speaking crowd