Dutch investment firm accused of fraud

7th May 2009, Comments 0 comments

The Financial Markets Authority has reported Partrust Beheer of investment fraud worth EUR 40 million.

THE NETHERLANDS – Dutch investment company Partrust Beheer has been accused of investment fraud by the Financial Markets Authority (AFM).

The Breda-based firm is accused of taking EUR 40 million from new investors to pay off interest to other investors instead of investing the money as promised, resulting in at least 240 investors who may lose their money.

A total of 300 people have invested EUR 300 million in Partrust, said the AFM.

The investment fraud is similar to the pyramid structure used by Wall Street heavyweight Bernard Madoff  which lead to worldwide banks and investment funds reporting losses of up to USD 50 billion (EUR 37.4 billion, CHF 58.9 billion).

The AFM has ordered the firm to tell its investors exactly what has happened to their money. Three of the company's directors are being prosecuted for selling investment products without a licence.

Partrust is one of the 10 investment firms the AFM is currently investigating.

Another investment firm, Groen Invest is also suspected of fraudulent practices. More than 1,000 investors have confiscated 700 hectares of woodland belonging to the firm as they fear Groen Invest, which deals in robinia trees to replace tropical hardwood, has squandered their money.

New legislation means the AFM can now investigate unfair practices of investment firms. On average, each investor puts EUR 50,000 into different ventures.

Radio Netherlands / Expatica

0 Comments To This Article