BERLIN: In a major development, authorities launched coordinated raids in seven European countries as part of an investigation into alleged accounting fraud involving German real estate giant Adler. The company, as well as prosecutors, confirmed the raids, which targeted 21 sites across Germany, Austria, the Netherlands, Portugal, Monaco, Luxembourg, and Britain.
German prosecutors in Frankfurt revealed that the raids focused on a “company in the real estate industry,” with Adler later confirming its status as the subject of the searches. Approximately 175 German police officers participated in the operation, highlighting the significant presence of Adler in Germany.
Probe into Fraud by Property Giant
The investigation centers around former board members of Adler, who include German, Austrian, and English nationals aged between 38 and 66. They are accused of misrepresenting or aiding in the misrepresentation of the company’s balance sheets between 2018 and 2020. Additionally, they face allegations of dishonestly inflating project prices.
The probe was initiated after Viceroy Research, a short seller, published a report in 2021 alleging that Adler was attempting to conceal its true financial position, which it claimed was dire. At the time, Adler denied the report. However, the case gained momentum when German financial watchdog Bafin took up the investigation and uncovered several irregularities.
Adler released a statement expressing its cooperation with the authorities and its full support for a swift clarification of the facts. Since the allegations emerged, the company has experienced significant turmoil, with its shares plummeting by over 95 percent on the Frankfurt stock exchange. The news of the raids further impacted the company’s stocks, causing them to slide an additional two percent on Wednesday.
