After a large-scale fraud case, Volksbank Düsseldorf Neuss is facing financial challenges. The institute needs 100 million euros from the industry association.
After a massive case of fraud, Volksbank Düsseldorf Neuss is forced to seek help from the Federal Association of Volks- und Raiffeisenbanken (BVR). This is reported by the “Handelsblatt” citing the financial institution.
Accordingly, the cooperative bank was “affected by fraudulent activities in connection with an international transaction,” it told the “Handelsblatt”. The credit institution is “confronted with a claim for 100 million euros, the legitimacy of which is highly controversial.” According to “Handelsblatt”, the bank has already made provisions and received guarantees from the industry association of cooperative banks.
According to the industry portal “Finanz-Scene”, the background to the claim is a case of fraud at the French low-cost fashion chain Kiabi. According to “Finanz-Scene”, a former manager of the chain is accused of embezzling around 100 million euros, possibly together with accomplices. According to insiders, the account for Kiabi was set up at Volksbank Düsseldorf Neuss, it goes on to say. The manager is now in custody.
However, in July, the company apparently realized that the money had been withdrawn to Turkey when it tried to access it. Apparently it no longer has access to the funds. Kiabi belongs to the French entrepreneurial family Mulliez, which also owns the majority of the sporting goods retailer Decathlon. The fashion chains Orsay and Pimkie were also part of the entrepreneurial family until they were sold.
Volksbank Düsseldorf Neuss is not disclosing any further details due to ongoing investigations by the public prosecutor’s office. According to “Handelsblatt”, the security institution of the Federal Association of Volks- und Raiffeisenbanken also does not want to comment. The bank says it has filed a criminal complaint. The Düsseldorf public prosecutor’s office has not yet commented on the case.
Volksbank Düsseldorf Neuss is already the third cooperative bank this year that is dependent on support. The Volksbank Dortmund-Nordwest and the VR-Bank Bad Salzungen Schmalkalden had previously needed financial help to offset impending losses. These were caused by real estate transactions or value adjustments on real estate.