Bank Linked to B.C. p3s Raided by German Prosecutors

by mike_yvr | December 17, 2008 at 11:32 pm

117 views | 2 Recommendations | 0 comments

German prosecutors have raided the offices of a company linked to two high profile hospital projects in B.C.

German prosecutors said Wednesday they have searched the offices of troubled lender Hypo Real Estate Holding AG and the homes of former managers in an investigation of suspected market manipulation and other offenses.

The Munich prosecutors' office said it started conducting the searches on Tuesday. It said they involved the former supervisory board chief and people who were members of the management board between November 2007 and 2008, but did not identify them by name.

The prosecutors' office said in a statement that it is investigating suspicions the company's situation was misrepresented and of market manipulation, as well as allegations of breach of trust.

Hypo Real Estate ran into trouble in mid-September as credit froze on international markets after its Dublin-based unit Depfa Bank PLC failed to attract short-term funding amid the widening credit crunch.

Depfa has been tagged to provide the financing for the Surrey outpatient hospital and the expansion to Royal Jubilee Hospital. Both are being built as so-called public-private partnerships.

0 See all footage | View Slideshow

Share: email story | add to any | | facebook | stumbleupon