Conflicts between investors and their business partners have occupied the German courts for years. Authorities in Liechtenstein, Austria and Switzerland are now also investigating.
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Dusseldorf, Zurich, Berlin Raid on investor Florian Fritsch: public prosecutors in Austria, Liechtenstein and Switzerland searched the business and private premises of the German entrepreneur and asset manager in three countries.
The investigators are investigating the suspicion of serious fraud, infidelity and money laundering, as the public prosecutor in Liechtenstein confirmed to the Bloomberg news agency on Thursday. As Bloomberg further reports, the searches took place on October 26th.
According to Handelsblatt information, the authorities are investigating not only against Fritsch, but also against at least four other suspects. They took documents, computers and mobile phones from the company headquarters of the private equity investment specialist Fritsch & Co. in Vaduz and from other locations, as reported by people familiar with the processes. In addition, Fritsch’s accounts are frozen.
As an early investor in successful tech companies, Fritsch made a name for himself, for example through engagements with the delivery service Delivery Hero or the company Relayr, which specializes in networking machines.
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According to Handelsblatt research, however, Fritsch’s business practices have been occupying German courts for almost 15 years. Former partners accuse the entrepreneur, among other things, of embezzlement and breach of trust. The allegations forced Fritsch, for example, to end his involvement with the stock exchange shell GFJ ESG. Together with ex-Klöckner boss Gisbert Rühl and Relayr founder Josef Brunner, he originally wanted to take the thermostat manufacturer Tado public.
Former business partners had also taken action against Fritsch in Liechtenstein: a Liechtenstein lawyer, on behalf of two major creditors, had obtained arrest warrants in the mid double-digit million range over Fritsch accounts. The accused investor confirmed in August that there were “differences about the amount and maturity of investments. I have counterclaims of a comparable amount from one party.”
Fritsch gained international fame when his investment company Kalrock joined the Indian airline Jet Airways, which had gotten into financial difficulties and had to file for bankruptcy in 2019. Partner in the deal is Murari Lal Jalan, a businessman from Dubai.
Most recently, the attempt at restructuring stalled because the airline did not have sufficient funds to order new aircraft. Flight operations were originally scheduled to resume in March 2022, but the company has reportedly failed to find lenders.
More: This man has been employed by German courts for 15 years – yet investors keep giving him money