Heinrich Maria Schulte, the former boss of German real estate fund management business Wölbern Invest, has been sentenced to eight-and-a-half years in jail for embezzling over €147 mln in funds which the company managed for its more than 30,000 investors.
Heinrich Maria Schulte, the former boss of German real estate fund management business Wölbern Invest, has been sentenced to eight-and-a-half years in jail for embezzling over €147 mln in funds which the company managed for its more than 30,000 investors.
The public prosecutor had sought a jail sentence of 12 years, but even the 8.5-year term handed down by the court in Hamburg is one of the heaviest ever for white-collar crime in Germany.
Schulte’s lawyers said they will appeal the sentence and the public prosecutor is considering similar action. If further steps are undertaken, the case will likely be handled by the federal court in Karlsruhe.
The case against Schulte (61) came to light in September 2013 when the authorities raided the Hamburg offices of Wölbern Invest and seized a large number of files. A month later suspension of payments was requested for one of the funds and the allegations against Schulte mounted.
The 30,000 participants in Wölbern Invest funds had invested a combined €1.1 bn mainly in offices with a total value of around €2 bn. Several of these assets were located in the Netherlands.
Among the embezzlement charges, Schulte reportedly splurged €2.5 mln on the renovation of his villa in Hamburg and also spent €2 mln on private flights with a further €1 mln going on art purchases, opera visits and helicopter skiing.
