Sympathetic judge gives Germany's most costly fraudster a present for Christmas
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Jurgen Schneider, the property tycoon who perpetrated the costliest fraud in post-war German history, was sentenced yesterday to six years and nine months in jail. However, this being the season of goodwill, the judge promptly lifted the arrest warrant, allowing the convict to spend Christmas with his family.
Until the collapse of his empire in April 1994 with debts of DM5bn (pounds 1.7bn), Schneider was feted as the developer with a Midas touch. Derelict urban landscapes turned at the wave of his wand into luxury shopping arcades. At the peak of his career, he controlled prime sites in Frankfurt and Leipzig, and lived in a gilded Schloss in the German financial capital's stock-broker belt.
As creditors caught scent of the scale of his fraud, Schneider fled with his wife Claudia abroad. They were tracked down in Miami in May 1995 and brought back to Germany in February 1996.
During his trial in Frankfurt, Schneider's defence rested on allegations that the creditors bankrolling him had known they were being hoodwinked. He did not dispute charges that he had overstated the value of his holdings in order to obtain loans.
Heinrich Gehrke, the judge sentencing him yesterday, felt sympathetic to Schneider's position. "The banks knocked his doors down with almost unbelievable recklessness," he said. "They didn't check asset valuations, and if there were shortcomings in his loan applications, they simply accepted them."
Among the creditors were Germany's biggest financial institutes, including Deutsche Bank, which lost DM470m.
"Schneider was neither a professional fraudster nor a Robin Hood of the property world," said the judge.
Once Christmas is out of the way, Schneider will take up residence in a low-security prison. Having served 32 months already, he will shortly be entitled to home leaves at weekends. After 20 months, he will be up for parole.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments