Criminal Proceedings in Vienna Real Estate Scandal Set to Begin in January

The long-anticipated criminal proceedings related to the Vienna-based real estate investment company Wienwert are scheduled to commence in the second half of January. The trial will take place before a panel of lay judges at the Vienna Regional Criminal Court. While specific dates and the number of hearing days are yet to be determined, preparations for the trial are actively underway.

The prosecution, led by the Austrian Public Prosecutor's Office for Economic Affairs and Corruption (WKStA), has filed an extensive indictment against former Wienwert CEO Stefan Gruze, alongside ten other individuals and three corporate entities. The charges include severe commercial fraud, breach of trust, and fraudulent bankruptcy, following investigations that began in 2017. The focus is on substantial financial harm allegedly caused to private investors.

Allegations of Misrepresentation and Financial Misconduct

According to prosecutors, the former Wienwert leadership is accused of presenting the company as financially robust while concealing its insolvency. It is further alleged that investors were misled about the intended use of bond proceeds, with claims that funds were diverted for purposes unrelated to their original investment intent. Additional accusations involve the misappropriation of company assets, including using corporate resources for personal liabilities and authorizing unjustified bonus payments.

The indictment also details methods allegedly employed to shield company assets from creditors, thereby hindering or reducing their available claims. The overall damage to investors and creditors is estimated to be significant, with the proceedings expected to clarify the full extent of financial losses.

High-Profile Individuals Among the Accused

The list of defendants extends beyond former Wienwert executives. Notable figures facing charges include two former CEOs, a former employee, ex-Vienna ÖVP party chairman Karl Mahrer and his spouse, as well as SPÖ municipal politician Ernst Nevrivy. Klemens Hallmann, a once-prominent entrepreneur now declared insolvent, is also among those charged. The allegations against Mahrer and his wife revolve around contributions to breach of trust, specifically regarding payments made to a PR consultancy operated by Mahrer's wife. Over a span of seven months, the consultancy reportedly received EUR84,000 from Wienwert, allegedly without providing commensurate services. Although Mahrer had no official business ties to Wienwert, he is said to have acted on behalf of the PR agency in relation to the transactions.

Ernst Nevrivy is accused of providing the Wienwert board advance information about a planned expansion site for public transport depots. Following this, Wienwert acquired the property, which was subsequently sold to the municipal transport company, Wiener Linien, at a higher price. The prosecution asserts this maneuver resulted in a loss of approximately EUR850,000 for the city of Vienna. In return, Nevrivy allegedly received VIP football tickets and facilitated transfers of EUR36,000 to a music group from his home district.

Corporate Dealings and Creditor Losses

Klemens Hallmann faces accusations that, despite being aware of Wienwert's precarious financial situation, he orchestrated the sale of shares in a property development project under terms disadvantageous to Wienwert AG. This transaction is claimed to have caused nearly EUR4 million in losses for the company's creditors.

All individuals and organizations involved maintain the presumption of innocence. The legal proceedings are expected to unfold over several weeks, reflecting the complexity and scale of the case. The outcome is anticipated to set a precedent for handling similar cases of alleged investor deception and corporate malpractice within Austria's real estate and financial sectors.