Not a good deal

Strache was probably the victim of a fake investor

The alleged victims are keeping a low profile about how much they are likely to have lost, but the losses are apparently in the millions.

(Bild: APA/EVA MANHART)

Several customers were apparently defrauded by a so-called scammer from the Netherlands - one prominent victim: former Vice-Chancellor Heinz-Christian Strache.

"My loss is huge. I've already lost a hotel, that's five and a half million equity, which is not without its problems," explained one of those affected, project developer Siegmund Kahlbacher, to the "Standard" newspaper. He is apparently just one of many who have given in to the lure of an allegedly rich investment in their company by the Dutchman Danny K..

First port of call: Strache friend Höbart
Hotel developers, crypto entrepreneurs and cosmetics retailers are said to have concluded contracts with the man, but the millions they were promised in the form of a stake in the company allegedly never materialized. As many as 18 to 30 people are said to be affected.

Strache and Höbart are not only long-standing political companions, but also friends.

(Bild: APA/Georg Hochmuth)

The first point of contact for many of them in 2023 was ex-politician and Strache friend Christian Höbart. K. had promised him access to financial instruments with corresponding powers of attorney that would enable him to invest in companies in the form of shareholdings (so-called venture capital), as he revealed to Der Standard.

Investor hoped for Strache's network
The ex-politician believed K., wanted to work with him and eventually introduced him to Strache. Together, he and Strache were to refer clients to K. in return for a commission - an attractive proposition for the alleged investor, as Strache in particular had important business contacts from his time in politics.

Advance payments demanded
Kahlbacher is also part of this network. He had lacked capital for a seven-star luxury hotel in Baden - the project had incurred ongoing costs, which is why he had hoped for rapid financing from K.. In a first meeting, however, he allegedly wanted an advance payment of 550,000 euros from him - for example for insurance or a due diligence audit - the money was then to be returned later.

Customers put off, money did not flow
At this point, however, Strache himself is said to have objected, saying that this was not possible, Kahlbacher quoted the words of the former Vice-Chancellor. K. then backed away from this payment and wanted to carry out the financing in the same way. Kahlbacher agreed to the deal, signed guarantees (according to his own statements, he is personally liable for 50 million), but the promised payments never came.

Danny K. kept putting him off, saying there were problems with the transactions and allegedly blaming the banks. In the meantime, he collected fees from his customers, but in the end he described the customers themselves as fraudsters. He therefore had to withhold the payments already made to cover his own losses, he told Der Standard.

Strache tried to "build bridges"
Strache and Höbart eventually became suspicious and, according to Höbart, tried to "build bridges" between K. and the customers and put pressure on the Dutchman, but they were also put off. Ultimately, however, the business relationship ended in a complaint. "We suffered considerable damage, what happened here with Mr. K. was a catastrophe," Höbart continues.

In the meantime, the Vienna public prosecutor's office is investigating K. for serious commercial fraud and forgery of documents.

Not everyone was taken in by K.
K. is said to have been very busy with his business. But not all potential customers were taken in by him. This year, for example, he is said to have approached Vienna's Austria soccer club in order to help the financially troubled club with a stake in the stadium.

However, he was not interested in specific figures and data during the meeting, but instead wanted to find an investor straight away, according to the club's financial director: "I knew immediately that he had no idea."