Infinus Group: Renewed crackdown and threat of insolvency

[GRP Rainer LLP Lawyers Tax Advisors - 18.03.2014] GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Dusseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London - www.grprainer.com/en conclude: The Infinus Group landed in the headlines at the end of 2013. Following a large-scale raid, various arrests were made. Accusations of fraud hang in the air. Around 25,000 investors are thought to have been cheated out of approx. 400 million euros by means of an elaborate system. A great deal of businesses belonging to the Dresden based Infinus Group subsequently filed for insolvency. Most of them are still involved in preliminary insolvency proceedings.

There have since been reports of a further raid on March 5. This time the business premises of the Infinus AG Financial Services Institute (FSI) based in Freital were supposedly searched by the Dresden Public Prosecutor's Office. Vehicles and cash resources were said to have been seized in the process. As reported by Handelsblatt online, it is suspected that the FSI took commissions amounting to millions of euros from criminal transactions of other Infinus companies. The FSI has been attributed to Infinus blue and hitherto considered to be solvent. However, Handelsblatt goes on to report that there may also be a threat of insolvency here.

The situation concerning the Infinus Group is becoming more acute and the affected investors must continue to worry about their invested capital. That is why they should turn to lawyer competent in the fields of banking and capital market law who can examine their legal possibilities and set the appropriate legal steps in motion. It may be possible to assert claims for damages.

It is necessary to examine whether the investment consultation has met the high standards of investor and issue-specific advice. The investors ought to have been informed about all risks in connection with their investment during the consultation discussion. Furthermore, damages for prospectus liability are also a possibility if the information in the sales prospectus was incomplete or untrue.

Damages claims can already be asserted when individual companies are still involved in preliminary insolvency proceedings.

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