First verdicts in the accounting scandal
Ex-Steinhoff manager convicted
08/21/2023, 18:01
In the processing of the accounting scandal at the Steinhoff furniture group, there are first judgments. The former CEO, however, did not appear for the procedure. The defense attorneys for the two convicts see him as the actual puller of the strings
Two former managers of the Steinhoff furniture group have been convicted in the accounting scandal trial. A 52-year-old has to go to prison for three and a half years for false balance sheets and aiding and abetting credit fraud, as the presiding judge at the Oldenburg district court said. Because the procedure was delayed, one year is considered to have been executed. A 64-year-old was given a two-year suspended sentence for making incorrect statements in the balance sheets. The verdict is not yet legally binding. Before the verdict, the accused expressed regret over the crimes. The 52-year-old said he never found the strength to get out. Later he did everything to clarify the events.
The disclosure of the balance sheet manipulations at the end of 2017 almost completely destroyed the company’s market value. Steinhoff has its roots in Westerstede in Lower Saxony. Steinhoff International Holdings, which operates worldwide, now has its headquarters in Amsterdam and is controlled from South Africa.
In addition to the two managers, the former CEO of Steinhoff International Holdings, Markus Jooste, and a trustee were also charged. The two convicts were managing directors of the subsidiary Steinhoff Europe Group Services from Westerstede. Jooste did not appear at the start of the trial. The court then stayed the case against him and requested an arrest warrant against him. The proceedings against the trustee were dropped in exchange for a payment.
According to the court, the entire procedure has not yet been concluded with the current verdict. The investigation into Jooste is only suspended until a trial can be held against him.
Higher penalties required
Before the verdict, the public prosecutor’s office confirmed that the accused had a high level of criminal energy in the closing speeches. The actions, if you include the statute of limitations, would have had a total impact of more than 2.3 billion euros. The authorities had demanded higher penalties for the two accused.
The defense attorneys agreed with the statements of the prosecutors in places. A defense attorney for the 52-year-old said Jooste was primarily responsible for the case. “He’s the real mastermind.” A defender of the 64-year-old also spoke of a system that Jooste created.
Steinhoff, set up by Bruno Steinhoff from Westerstede, was long considered Europe’s second largest furniture group. In Germany, the company was known for the Poco chain, which has since been sold to its competitor XXXLutz. The group has been in a crisis since the end of 2017, when investigations into accounting irregularities began. In December 2017, the group’s share price collapsed by more than 90 percent. Billions of investment funds were lost.