H2O Asset Management is facing lawsuits from depositors with the help of German business tycoon Lars Windhorst, who appointed a chief financial officer two years ago.
H2O’s Collectif Porteurs, a group of insurers and wealthy individuals, has asked a court in France to appoint an independent expert to review the company’s investment in a joint venture with Windhorst.
Established in 2010 and with a history of recurrence, H2O met with an outflow of funds in 2019 when a Financial Times investigation revealed the size of the money he was defending at Windhorst. The 44-year-old has a job and a business start from a football trip.
Although the London-based H2O was able to address the crisis and face 8bn redemption claims, French authorities last year suffered a series of financial losses due to “price uncertainty” based on their many Windhorst-related products.
The treasurer should write down the amount of securities by 60%, and then convert them into new ones “Side” money. Advertisers have over € 1bn invested in these funds.
Dominique Stucki, a colleague of Cornet law firm Vincent Ségurel, a lawyer representing the finances, said that trying to find a court-appointed expert “is part of a complex process that has devastated many professionals and individuals, in France and abroad”.
In addition to trying to “calculate” the losses stored in H2O funds, the group wants a forensic expert to investigate the so-called sales agreements that H2O has made, the price tag in the side pockets and commissions paid to brokers.
H2O declined to comment.
FT has already said how it works H2O used “buy and sell” selling some of the most complex security features outside of its main site.
Audit Company KPMG warned earlier this year that six H2O currency accounts were “Impossible to confirm”, citing the amount of price uncertainty as a violation of the rules.
Windhorst agreed last year to repay the bonds, but the first way to do this through a car called Evergreen Funding fell through. German authorities are investigating if Evergreen conducts banking transactions without the required documents and violates German law. Windhorst denied the allegations and said he would provide his support to government officials.
The economist bought himself a vacation spot in May when Tennor, his major trading company, agreed to repay his loan with H2O, setting a deadline for January repayment.
French bank Natixis, the largest owner of H2O since its inauguration, said last November seek to sell its value treasurer.