Police slow to crack down on fraudulent investment firm
A company promised its clients investment opportunities through a fraud that led to around HUF 1 billion in damages. In what seems to be a crystal clear case, the police seemed surprisingly reluctant to finally press charges against the executive of the firm, as aggrieved investors worry that they will entirely lose what they invested. Atlatszo.hu spoke to a private investigator involved in the case.
Shortly after Atlatszo.hu published is coverage, Hungarian police formally pressed charges against Zoltan Szabo, the head of IBH DEPO Zrt which is accused of selling fraudulent investment offers and causing its clients some HUF 1 billion in damages (€3.2 million). One individual alone lost around €1 million through getting involved. Atlatszo.hu spoke to a private investigator he contracted.
IBH apparently had business relations with a certain Janos Jesztl, who promised investors bargain deals for buying foreclosed property in Germany. IBH came into the picture as a mediator, which would become the former owner of the assets Jesztl helped buy. However, when the buyer wanted to have a look at his assets and traveled to Germany, he found that the whole thing is a scam, the official certificates he got were all fake and pressed charges.
Jesztl has since disappeared, our investigator source said he also owed money to shady characters. He also told us that the police were surprisingly sluggish in unraveling the matter. Even though the situation was clear, the investigation was continued against an unknown perpetrator, which had clients concerned that Szabo would use the time to somehow syphon out his wealth and leave his investors penniless.
IBH and Szabo have a less-than reputable track record, a look at his earlier dealings shows that he had already founded several companies to manage real estate deals and drove them into the ground. When we approached him, he didn’t deny his dues to his customers, but denied responsibility saying he too was deceived by his former partner. Our investigator noted that he has been unable to reach his client since the summer. His assumption is that he somehow reached a deal with IBH.
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