Five and a half years ago balance sheet manipulations at furniture retailer Steinhoff were exposed. Now a court wants to clarify who cheated and how. Because incorrect representations in company balance sheets are a criminal offence.
Several billions of assets disappeared into thin air, investors all over the world lost money when balance sheet manipulations at the international furniture retailer Steinhoff became known in 2017. The second trial within a few weeks, which is intended to legally process this event, begins at the Oldenburg Regional Court on Wednesday (9:00 a.m.).
However, it is not about the lost money of the investors, but about the incorrect presentation of the company balance sheets. Such manipulations are punishable under Section 331 of the Commercial Code. A 51-year-old ex-managing director of European Steinhoff companies is said to have misrepresented the financial situation in five cases between 2010 and 2014. A 64-year-old ex-managing director is said to have provided assistance.
“Difficult to understand sham transactions”
According to the court, the balance sheets were embellished by “fake transactions that are difficult to understand”. The fixed assets of offshoots of the furniture group with roots in Westerstede in Lower Saxony were overvalued. Alleged assets were pushed back and forth between the subsidiaries. According to the prosecution, this concealed losses in Europe. For example, in the 2011 financial statements, the balance sheet for the entire group is said to have looked 840 million euros better than it really was.
A separate trial against former Steinhoff CEO Markus Jooste (62) from South Africa has been underway in Oldenburg since mid-April. He is said to have instigated the other managers to the manipulations. However, Jooste did not appear at the trial, whereupon the public prosecutor’s office requested an arrest warrant. The court’s decision on this is still pending. Charged with Jooste was a 72-year-old trustee. The proceedings against him were temporarily suspended against payment of a monetary condition.
Source: Stern
