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By Kent Larsen
Munich LDS Members Accused in Massive Fraud
MUNICH, BAVARIA, GERMANY -- The Munich, Germany Criminal Court opened
a massive fraud trial last Thursday against four principles of a
local investment company, including three prominent local LDS Church
members. The trial accuses the four of using their firm,
Wirtschaftsanalyse und Beratung Aktiengesellschaft (Economic Analysis
and Consultation, AG), known by its initials, WABAG, to defraud more
than 6,000 investors of 190 million German Marks ($ 95 million).
According to news reports, funds from investors were to be invested
in ten difference environmental projects, including bio-power
stations, recycling centers and vegetable oil (used in bio power
projects) factories. But, after a two-year investigation, prosecutors
have concluded that only about one-third of the collected funds (245
million Marks collected from 1995 to 1999) went to the factories,
which they claim were never viable.
The newspaper accounts also mention that among the alleged victims
are many local LDS Church members who invested in WABAG, apparently
because they knew the men involved. While the newspaper accounts
don't give the men's last names, a Mormon News subscriber identifies
one as a former bishop fo the Munich 1st Ward, another as a former
counselor in the Munich stake presidency and the third as a sealer in
the Franfurt temple.
If proved, the fraud is reportedly the largest fraud case ever in
Munich. The trial is expected to last until sometime next year, and
may involve others. The newspaper accounts say that a prominent local
lawyer, Max Strauss, who is the son of the late Bavarian Prime
Minister and former German Secretary of Defense, Franz-Josef Strauss,
was the legal counsel to WABAG and may also be indicted in the case,
accused of aiding and abetting the fraud.
Sources:
Ein Strafverfahren der Superlative [A Superlative Criminal Trial]
Munich Germany Suddeutsche Zeitung 21Sep01 P2
By Robert Jaquet
Translation:
A Superlative Criminal Trial
Millionenbetrug mit Eko-Projekten [Million-Mark Eco-Project Fraud]
Munich Suddeutsche Zeitung 17Sep01 P2
Translation:
Million-Mark Eco-Project Fraud
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