The home of Helmut Kiener, the founder of the troubled K1 Group German based hedge fund firm, has been raided and authorities were seen removing boxes. Kiener has been under investigation for fraud and breach of trust. The fund has been the subject of an international criminal investigation since saddling Barclays, JP Morgan Chase, and BNP Paribas SA (amongst others) with losses in the region of $400 million.
The investigation centres on whether K1 used world-wide circular transactions to give the impression that it had the assets to cover loans, which otherwise would not be forthcoming.
There is concern that the $400 million so far identified might grow as the investigation continues.
According to reports, all calls to K1 appear to have been stonewalled or the lines disconnected.