Carinthian property manager admits: Damage exceeds one million euros, 200,000 euros unaccounted for
The head of three Klagenfurt property management companies is largely admitting guilt, according to his lawyer. An expert is to determine the precise extent of the damage.
Confession in Klagenfurt property management case: Appraiser to quantify damage
According to the Kleine Zeitung, the Klagenfurt public prosecutor's office has commissioned an expert to quantify the damage in the case of the insolvent Carinthian property management companies. Two weeks after the collapse of the first of three affected Klagenfurt firms, authorities are investigating the head of the companies on suspicion of breach of trust. Based on current findings, there are several hundred victims and damage totalling significantly more than one million euros.
The man is accused of withdrawing funds from residential and commercial property owners whose properties he managed, and using the money for his own business purposes. Two former employees filed charges against him at the end of October; shortly beforehand, he had himself filed a voluntary disclosure.
"My client is largely admitting to the charges now raised," declared his lawyer Franz Zimmermann. The accused is cooperating fully with the public prosecutor's office and will disclose the whereabouts of the funds to investigators.
Accounts frozen, 200,000 euros theoretically available
Zimmermann made two noteworthy statements about his client's assets. Substantial credit balances are said to be held in the company accounts, but these have been frozen as a result of the voluntary disclosure. In addition, the accused is entitled to a claim of approximately 200,000 euros from a civil case he won — commission for arranging the sale of a property. However, "the claim currently appears to be uncollectable," Zimmermann conceded.
Whether the victims will benefit from these assets remains uncertain. The insolvency administrator Martin Mutz, a Klagenfurt lawyer, expressed little optimism: "The assets available to me as insolvency administrator, which are then to be distributed equally among the insolvency creditors, do not suggest a significant dividend to be distributed to the creditors."
Affected parties should appoint new property management quickly
Mutz and the Carinthian Chamber of Labour and Economy recommend that all affected parties immediately engage a new property management company to prevent further damage. The Carinthian Chamber of Labour also advises affected property owners to contact the insolvency administrator immediately and convene owner meetings to discuss next steps.
It is considered advantageous if individual owners authorise the majority to carry out urgent administrative tasks. The Chamber of Commerce maintains a list of 15 Carinthian property managers with available capacity.
The accused property manager is presumed innocent.
Source: Kleine Zeitung