BGH: False statements in sample invoices

The Federal Court of Justice (BGH) sentenced an initiator (redeveloper of old housing stocks) to reverse transaction in its judgement of 20.07.2007 (Ref. V ZR 227/06). The initiator had bought up old housing stock, refurbished it, divided it up according to WEG, and provided it with a financing proposal together with a “sample profitability calculation” […]

Caution – liability for false statements in sample calculations

Intermediaries who prepare sample calculations of returns, appreciation potential or other future assumptions for their clients expose themselves to liability risk if the calculation contains misstatements. This is especially true when speculative elements are included. For example, in July 2007 the Federal Court of Justice (BGH) sentenced a redeveloper of old housing stock to reverse […]

Controlling and distribution law: Increasingly large VSH gaps in the area of closed-end funds and investments

*by Johannes Fiala, Lawyer (Munich), Mediator (Univ.), MBA Financial Services (Univ.Wales), MM (Univ.), Certified Financial and Investment Advisor (A.F.A.), EC Expert (C.I.F.E.), Lecturer (Univ. of Cooperative Education), Banker (www.fiala.de) Never do anything by halves, or you’ll lose more than you can ever recover. (Louis Armstrong, American jazz musician, 1900 – 1971) The VSH broker Ralf […]

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Discussion of the judgement of the BGH of 20.07.2007

The Federal Court of Justice (BGH) sentenced an initiator (redeveloper of old housing stocks) to reversal in its judgement of 20.07.07. The judgement is based on the following grounds Attorney-at-law Dr. Johannes Fiala (www.fiala.de), Munich, has discussed the judgement and sent it to us for publication together with his lead sentence. Excerpt from the judgment […]

Judgement discussion to LG Munich II from 17.08.2006

In its judgement of 17 August 2006, the Munich Regional Court II ordered the broker of a closed-end investment to pay damages on the grounds of incorrect advice in connection with the IRR method (internal rate of return). Lawyer Johannes Fiala, Munich, (www.fiala.de) has discussed the judgement – underpinned with scientific specialist information (selection) on […]

Investment fraud in the billions

in accordance with § 264 a of the German Criminal Code (Strafgesetzbuch) Deception of investors by means of false yield information*. *by Johannes Fiala, M.B.A., lawyer (www. fiala.de), partner in the law firm Fiala, Freiesleben & Weber (lawyers and patent attorneys, tax consultants & auditors), business economist, bank clerk, certified financial and investment advisor (A.F.A.), […]

Beware of false advisers

As of 22 May 2007, insurance intermediaries subject to licensing must, among other things, possess a VSH. For months, a price war has been raging in order to win the loyalty of as many intermediaries as possible – and they obviously have more plans for their addresses later on. The offers of the pecuniary damage […]

Falk-Fonds investors: banks and intermediaries

Banks and intermediaries liable to aggrieved FALK investors for failure to disclose IRR reinvestment implications The formerly respected group of companies of the initiator Helmut W. Falk is bankrupt. Other companies, so-called investor KGs, are also insolvent. Numerous investors were misrepresented the conditions with subscription and/or purchase of their participation in FALK funds. Report Mainz […]

Judgement discussion to LG Munich II from 17.08.2006

RechtsprechungsReport In its judgement of 17 August 2006, the Munich Regional Court II ordered the broker of a closed-end investment to pay damages on the grounds of incorrect advice in connection with the IRR method (internal rate of return). Lawyer Johannes Fiala, Munich, (www.fiala.de) has discussed the judgement – underpinned with scientific specialist information (selection) […]

Controlling und Vertriebsrecht: Immer größere VSH-Lücken im Bereich geschlossener Fonds und Beteiligungen*

Controlling and distribution law: Increasingly large VSH gaps in the area of closed-end funds and participations*. (Louis Armstrong, American jazz musician, 1900 – 1971) The VSH broker Ralf W. Barth has long recognized (www.rwb-finanz.de) that with the increasing legal regulation of the intermediary market (EU-VRL, MiFID, VVG reform, etc.) a clear limiting trend in the […]