Billionaire Ski Resort Owner Under Investigation Over Massive Fraud

Prosecutors in Switzerland are investigating a series of financing deals surrounding Crans-Montana (CMA) ski resort and it’s owner, the Czech property billionaire Radovan Vitek.  A lawsuit in the United States alleges that Vitek defrauded a New York hedge fund and a Czech investment firm of more than $1 billion.

Last week, New York hedge fund Kingstown Capital Management LP and another investment firm, Investhold Ltd filed a complaint against Vitek and his property company CPI PG.

“Kingstown Capital and Investhold said Swiss prosecutors should look at whether it was illegal for CPI to use its controlling stake in CMA to raise money to consolidate control of CMA, and then turn around and use the funds to boost its stake in CMA Immobilier SA, a local property development company.

“Such a major acquisition of assets from a shareholder by means of a capital increase is a violation of the Swiss Code of Obligations,” Kingstown Capitaland Investhold argue in their April 10 complaint.” –

You can read more here – Swiss Probe Billionaire’s Ski Resort After Hedge Fund Sues