commercial fraud

When it comes to deciding Phoenix capital services: Courts are increasingly against the EdW
Trade, Economics, Finance, Banking & Insurance
Press release from: German consumer Ring eV (DVS)
The DV S helps injured investors.
Save this picture in large size
Erfurt, 12 August 2010. "More and more judges follow the reasoning of our trust lawyers and condemn the Compensatory Fund of Securities Trading Companies (EdW) payment in full or immediate Verbescheidung the damaged Phoenix investors," says Claudia Lunderstedt-Georgi, managing director of the German consumer protection ring eV (DVS). "Right now lie before the competent DVS-35 winning trust lawyer judgments, three of them even in the second Instance, "said Georgi Lunderstedt-on.

Here, the manager also points to a more recent success of the DVS in terms of debt service Phoenix: A finance company take over the process for a reasonable profit-sharing, the legal costs of the Phoenix investors concerning action against the Compensatory Fund of Securities Trading Companies (EdW). "After five years, still much of the 30,000 injured Phoenix investors are waiting for their total compensation from the EdW. Not all investors, it was there yet been possible to take the help of lawyers against the delaying tactics of the EdW to complete. Often this simply lacked the necessary financial cushion, "says Claudia Georgi Lunderstedt-off. "This is likely now to take over with the promise of our litigation funding partner, the legal costs of Phoenix investors, not be a problem anymore," said Lunderstedt-Georgi.


After calculating the DVS at least 10,000 injured Phoenix Investors will have the possibility that their legal costs and all costs are subject to risk in case of a process driven by the finance company. "We think the EdW is now threatening a mass mobilization, because many investors have already expressed their interest in the litigation funding announced," the Managing Director, DVS.
Click here to find out more!


For the next financial scandal

In 2005, Phoenix had to register capital services GmbH insolvency. This affected about 30,000 investors who had paid at least € 500 million. Taking into account the investors income due allocations amounted to 31.12.2004 the liabilities of the Phoenix to investors at € 809.778 million. In 2006, the co-responsible for the fraud people were sentenced to long prison terms. A 19 April 2007 decided upon by the insolvency court Frankfurt a. M. on the complaint of investors out by order of 29.10.2007 (AZ: 2 / 9 T 198/07 repealed). The Federal Court upheld the suspension in February 2009. Disbursements from the assets are therefore - not to be expected after a statement of the liquidator Phoenix - before 2015.

The Compensatory Fund of Securities Trading Companies (EdW)

The Compensatory Fund of Securities Trading Company is in accordance with § 5 Deposit Guarantee and Investor Compensation Act committed "... to take appropriate steps to compensate the creditors within three months of the occurrence of the case."

In the meantime, however, not just three months, but almost 2,000 days have passed since those waiting the 30,000 Phoenix-stricken investors to their total compensation, or at the conclusion of the compensation procedure. The compensation scheme has - with a few isolated cases - in February 2009, started to provide partial compensation. They will - they claim - pay a total of only 128 million euros.

EdW formed a "partial compensation" so that investors could be entitled so-called rights to separation and the first investor to make these claims and would thus adhere to the "bankruptcy estate" (which amounts to approximately € 250 million) would have to compensate. Only if the "bankruptcy estate is distributed," stand firm and the rest of the investors and damage could thus EdW-final compensation calculated. As long, however, significant assets are available, should EdW wait with the compensation or should they make only partial compensation.

As of 3rd June 2010 has decided the compensation scheme according to their own statements so far over 16 200 applications for compensation and promised partial compensation for a total of 73 million €. Therefore are still waiting more than 12,000 investors for a decision on their applications. To full compensation but also the other investors are waiting so far mostly in vain. In the approach of the EdW finds no support in the law.

The judgments

Due to the behavior of the compensation scheme, the DVS-trust lawyers have filed complaints against them and therefore fought so far total 35 winning judgments against the State EdW, of which three judgments already in second Instance. Four divisions of the district council in Berlin-Mitte and 15 civil chambers of the District Court Berlin have made these decisions independently.

First, the EdW was convicted of so-called failure to act on the activity (Decision of applications for compensation by clients) while the second was the EdW performance actions towards condemned to pay the remainder of the previously withheld compensation to the Phoenix-sacrifice (finding that the "partial compensation practice is illegal).