MultiBank Group Reportedly to File a Lawsuit against von Der Heydt Group

MultiBank Group, a retail brokerage, is set to launch legal proceedings against Germany’s Von der Heydt Group. According to Business Leaders, German Noteholders were offered payment by the MultiBank Group for funds allegedly diminished as a result of some actions done by the Von der Heydt Group.

Reports claim that the lawsuit against the Von der Heydt Group is filed under the premise of allegedly illegal transactions in mutual funds undertaken by the German group, which could have breached the European Regulatory Framework. The outlet notes that the manoeuvre had been allegedly illegal under Luxembourg’s laws.

From 2017 to 2020, the MultiBank Group entered a joint venture with Von der Heydt Group, where the retail brokerage invested over EUR 43 million. Business Leaders stated that VDH Group failed to disclose to MultiBank Group and other investors that their trading and other investment activities were allegedly breaching both German and Luxembourg regulations.

In fact, the German authorities launched a raid on the offices of a money manager in Berlin amid an investigation regarding a Ponzi Scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term. The media outlet noted that Stephan Blohm, the CEO of VDH Group’s in Luxembourg at the time, was the alleged main suspect and faced criminal charges.

Separate Litigation in the BVI

“The VDH Group also failed to reveal adverse findings of the Supervisory Commission of the Financial Sector in Luxembourg (CSSF) as confirmed in a letter dated 14 October 2020, in which the CSSF references 12 ‘severe deficiencies in relation to the functioning of the Funds,’ ranging from inability to provide the auditor sufficient and to deficiencies in the valuation of assets, to failure to abide by counter-terrorism and anti-Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term laws,” the outlet claimed.

Moreover, there are claims that the Von der Heydt Group participated as claimants in proceedings against one of the MultiBank Group subsidiaries, MBF, in the British Virgin Islands.

Finance Magnates reach out to MultiBank Group to confirm the lawsuit’s claims and details. We will update this news article accordingly once we receive a response.