“Falk Interest Fund”

ASG ordered to pay damages due to consulting error
The regional court Memmingen has with judgement of 06.05.2008 (AZ.: 3 0 2243/07) the selling company ASG AssecuranzService society ltd. & Co. kg from Hoffieim condemned to pay to an investor represented by attorney olive Renner at the “Falk Zinsfonds” damages at a value of € 6.178,69. According to its own statement, Falk Capital AG had “opened up an innovative form of financing” with the launch of the so-called “Falk interest fund”. The “Falk Zinsfonds” is an asset management company under civil law which granted financing to special purpose vehicles, i.e. parent and/or sister companies of the Falk Group. The “Falk interest fund” was used within the Falk Group for short or medium-term interim financing of future closed-end real estate funds (start-up financing). The “Falk-Zinsfonds” had a term of one year (extendable on request) and an interest rate of 8% p.a.. The minimum subscription amount was 10,000 euros. Around 3,000 investors have participated in the Falk Zinsfonds with a total volume of around € 58 million. The interest fund was launched in March 2003 and placed by November 2004. Following the collapse of the Falk Group, the interest fund is also in liquidation, as its business purpose was the granting of loans to real estate funds of the Falk Group. The “Falk Interest Fund” has started to repay partial amounts of the deposits. So far, however, only 35% has been distributed. The investor represented by attorney olive Renner was recommended the “Falk interest fund” by an advisor of the selling company ASG AssecuranzService society ltd. & Co. kg resident in Hoffieim at the Taunus for subscription. The plant was brought with security 8%. The conservative investor was offered the fund without any description of risks. A prospectus was also not handed over. The Memmingen Regional Court took evidence on 6 May 2008. The ASG consultant was heard as a witness. After taking evidence on May 6, 2008, the Memmingen Regional Court immediately upheld the action and ordered ASG to pay € 6,178.69. It is noteworthy here that in the opinion of the Memmingen Regional Court, a plausibility test had not been carried out. With a training of the mediator of the ASG in Ulm since only one was communicated that it concerns with the “Falk Zinsfonds” “an investment with 8% with a running time of one year with Verlangerungsoption of a further year2, so the regional court Memmingen in its reasons for decision. In addition it is certain after the taking of evidence that the investor was not informed about any risks. The ASG has appealed against the judgement, so that this is not yet legally valid. Whether and when investors in the “Falk Zinsfonds” will receive further payments remains to be seen. Claims due to incorrect advice threaten to expire on 31.12.2008. Investors should let examine therefore whether if necessary claims for damages exist against dcii advisors or the selling company because of wrong consultation, so that the damage fully occurred is also actually compensated. Stuttgart, 01 July 2008 Attention. Attorney Oliver Renner
Lecturer at the University of Applied Sciences Schmalkalden for the advanced course of studies to become a “Finanzfachwirt/in (FH)” Member of the Board of Directors of Rechtsforum Finanzdienstleistung e.V. Hamburg Deputy Chairman of the Examination Committee “Fachanwalt fur Bank- und Kapitalmarktrecht” of the Stuttgart Bar Association Wüterich Breucker Charlottenstr. 22 -24 70182 Stuttgart Phone: 0711/23992-0 Fax: 0711/23992-29 Email: 0. Renner~wueterich-breucker.de Homepage: http://www.wueterich-breucker.de
(PM 03.2008 Rae Wüterich.Breucker (Stuttgart))
Courtesy ofwww.wueterich-breucker.de.

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Dr. Johannes Fiala
PhD, MBA, MM

Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
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