In September 2018, a victim from the Innviertel reported for the first time for investment fraud, and the perpetrators have been investigated since then. “The duration of the investigation shows how complex the facts are,” says Gerald Sakoparnig from the Upper Austrian State Criminal Police Office.
Well-trained salespeople contacted the potential victims by phone and told them about new companies that would be dedicated to cancer research. These are said to be on the verge of an IPO and a quick investment could buy shares at bargain prices. Within a short period of time, the value of the shares would soar and those interested could make big profits quickly.
If the victim finally decided to purchase share certificates, all monetary transactions were processed through trustees in Germany. Confirmations of ownership of common shares were eventually sent out by email from Portuguese companies. A few days later, the shareholders received the supposed certificates in the mail. Further demands for cash benefits followed to enable the companies to go public.
Constantly changing companies
According to the police, the head of the criminal organization is a 74-year-old German living in Portugal. He has been the managing director of various companies since 2004. The criminal organization currently operates under the company names GenMedCare Corp., OLEVRA Lda., Schlangenfarm Schladen Ivy Venoms GmbH or Ivy Biz Inc.
There are currently 25 known victims in Austria, the amount of damage, according to the police, is around one million euros. One of the victims invested 300,000 euros in the simulated company. In addition, 200 victims in Germany and 25 Swiss people were affected, who were persuaded by the perpetrators to buy worthless share certificates. The number of unreported cases is likely to be even higher.
So far, the suspects have not yet been arrested; they are still likely to be engaged in fraudulent activities. The police are asking for clues.
“I advise everyone to be suspicious of such investments and to inquire. There are no financial products that can double their value risk-free. In an emergency, it is better to ask the financial market authorities again whether the companies actually exist,” says Sakoparnig.
Source: Nachrichten
