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Proceedings will be started against the individual by the Commission.

Defendant, aged 65, faces legal proceedings in the courthouse.

Trial initiation in Hildesheim for suspected businessman involved in swindling 56 million euros...
Trial initiation in Hildesheim for suspected businessman involved in swindling 56 million euros from investors.

Proceedings will be started against the individual by the Commission.

A 65-year-old businessman faces trial in Hildesheim for alleged €56 million investment fraud

A former real estate development company CEO, aged 65, is standing trial at the Hildesheim Regional Court for defrauding investors of approximately €56 million.

The accused, according to the indictment, failed to disclose the company's factual insolvency and continued to accept loans from investors. A court spokesperson confirmed that a plea bargain has been agreed upon for a guilty plea.

The court in Lower Saxony is ready to sentence the defendant to six years and nine months to seven years and three months imprisonment if they make a convincing confession about the main charge. The defendant started giving a statement on Tuesday, but the evidence will be presented to verify his claims. The trial continues until August.

The defendant founded and led a company specializing in the restoration and sale of protected historic buildings. The company financed its operations through loans from investors, first through private investors via commission-based intermediaries and later through institutional investors.

As per the indictment, the company faced financial distress due to escalating costs and project delays from 2015 onwards. It could only meet its liabilities by taking on new loans. In spite of restructuring efforts by external consultants, the debt continued to skyrocket.

The defendant reportedly knew about the imminent collapse and insolvency of the company as early as mid-2018. Despite this, he allegedly continued to raise funds from investors for another year, causing a loss of approximately €56 million. He now faces 27 counts of fraud.

No current prominent trial of a 65-year-old real estate entrepreneur involving company insolvency, investor impact, and fraud charges could be identified in the available sources. However, it is worth noting the rise of older entrepreneurs in the real estate sector, with the proportion of those aged 55–64 having increased in the last 25 years. Although specific cases of those aged 65 or older involved in legal or financial scandals are not detailed in the information available.

  1. The employment policies within the accused's real-estate company, likely including the approach to investor relationships, will undoubtedly be scrutinized during the trial.
  2. The ongoing trial in Hildesheim raises questions about the importance of transparency in finance and business, particularly in the real-estate sector.
  3. The community policy regarding the protection of investors and the prosecution of business fraud will be tested in the court's ruling on this high-profile case.

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