"System of deception"

TV investor in court for defrauding millions

Upper Austrian Daniel Mattes has often been cited as a positive example of successful start-ups - is it all a sham?

(Bild: Krone KREATIV/APA/GEORG HOCHMUTH, Rene Prohaska / VGN Medien Holding / picturedek.com)

As a "business angel", Daniel Mattes followed exciting pitches in the first season of "2 Minuten 2 Millionen" - and also invested in profitable start-ups. From 2011 to 2013, he allegedly cheated on his own company's balance sheets and deceived investors. The loss: 27 million euros!

"It's unusual for a defendant to sit on the defense bench," said Judge Michael Tolstiuk, addressing lawyer Michael Dohr and his client Daniel Mattes. However, he is allowed to remain seated and does not have to sit in the lonely chair in the middle of courtroom 303. 

From millionaire entrepreneur to defendant
Internet entrepreneur, venture capitalist, management consultant, multimillionaire - there is a long list of names for Daniel Mattes online. At the Vienna Regional Court, he is the defendant accused of serious commercial fraud. Judge Tolstiuk wants to know what he is doing now. The vague answer: "I'm self-employed. I do consulting work all the time." The 52-year-old does not want to give any details about his income or assets.

Mattes' first and probably greatest professional success: in 2009, he sold his self-founded company for 209 million euros - a service that made it possible to make cheap calls all over the world via the Internet. Which was not a matter of course at the time. A year later, the Upper Austrian founded his next company, an online payment system.

"Business Angel" on TV
As a celebrated start-up founder, he also appeared as a "business angel" in the first season of the show "2 Minuten 2 Millionen" in 2013. The allegations made by the economic and corruption prosecutor's office: while he was evaluating the business ideas of young entrepreneurs on TV, he allegedly deceived the investors in his own company with false balance sheets and annual sales. And defrauded them of 27 million euros (!) by selling shares.

It was a system based on deception right from the start. There is an expert report that concludes that the shares acquired are worthless.

Oberstaatsanwalt Stefan Siegwart

"The sales that were anchored in the financial model did not exist for the most part. Around 98 percent are false," accuses senior public prosecutor Stefan Siegwart. "This was a system based on deception right from the start. There is an expert report that concludes that the shares purchased are worthless." From 2011 to 2013, he sold millions to three investors. 

Lenders and bank also deceived
However, this was not the only act of fraud. He also allegedly presented falsified documents to a lender in 2014. The loss: 6.25 million euros. Four years later, he also fibbed to the bank, stating that he had 500 million euros in Luxembourg. The result was two Austrian accounts with an overdraft limit of two and a half million euros. "The defendant completely exhausted this and owed it to the bank," said the public prosecutor.

"It was completely normal business"
The Upper Austrian now faces up to ten years in prison in front of the jury. However, he denies the serious allegations. Regarding the sale of shares: "These were all completely normal transactions." The investments had lost value. That is always a realistic risk.

It is not yet clear how many hearings have been scheduled in the commercial trial against Daniel Mattes. It is also unclear when the verdict will be reached. In any case, the court has stated that the main hearing may be delayed.