German Property Group
("GPG", formerly "Dolphin Trust")

Where is the investor's money?

Hanover public prosecutor's office is investigating, among other things, suspected fraud and delaying bankruptcy

Around 20,000 investors from a wide variety of countries, especially Great Britain, Ireland, Singapore, Hong Kong and South Korea, have entrusted the GERMAN PROPERTY GROUP with a lot of money over the past few years: More than 1 billion euros should be used to acquire listed buildings from municipalities across Germany, to renovate them and to resell them to private buyers as living space. Investors were promised a return of up to 15%.

The lucrative sounding investment turned into a financial scandal. In July 2020, the GERMAN PROPERTY GROUP filed for insolvency at the responsible Bremen District Court. On October 15, 2020, the insolvency court opened the insolvency proceedings under the file number 531 IN 1/20 and appointed the insolvency administrator, attorney Justus von Buchwaldt from Bremen, as the insolvency administrator.

The insolvency administrator has meanwhile confirmed that the GPG business model was a pyramid scheme, since the investors' money did not flow into real estate as promised, but was also used to pacify other investors. "It has been proven beyond any doubt that the funds raised were used in the spirit of a pyramid scheme," said the insolvency administrator. The Hanover public prosecutor's office has also started criminal investigations - against company founder Charles Smethurst and against other people. In this context, six residential and business premises across Germany were searched in March 2021.

Damage compensation and reversal claims for aggrieved investors?

Lawyer and specialist lawyer for banking and capital markets law Dr. Stephan Greger recommends that aggrieved investors have their legal options for action checked by a lawyer. "Since the insolvency proceedings are likely to result in significant losses of assets, investors should also consider the assertion and enforcement of alternative claims. This includes, for example, tortious claims for damages against persons and companies responsible for liability, as well as claims for damages under civil law against investment advisors and financial intermediaries due to incorrect information and advice.

Have you lost money with investments in projects of the GERMAN PROPERTY GROUP?

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