Investigators searched the offices of Bayerische Versorgungskammer (BVK) on 5 November as part of a corruption investigation relating to the German pension institution’s investments in US real estate.
According to the Munich Public Prosecutor’s Office, the investigation involves, among others, a current and a former employee of BVK’s department responsible for real estate investments, as well as a member of Deutsche Finance Group’s management team.
Deutsche Finance Group’s offices were searched on 3 November, as previously reported by IPE.
The prosecutor’s office said it was “investigating suspected acts of corruption in connection with loss-making real estate investments involving seven property projects in New York, Miami Beach, Beverly Hills, Chicago, and San Francisco, that the BVK undertook with the involvement of Deutsche Finance Group”.
Investigators suspect that a BVK employee “exerted improper influence” over the real estate investments and the process of providing additional capital for the projects.
In return, the employee allegedly received benefits for himself and third parties from a member of Deutsche Finance Group’s management team, according to the prosecutor’s office.
These benefits allegedly included invitations to high-end restaurants in Munich, London, Los Angeles and New York, as well as stays in a luxury hotel suite in New York, the prosecutor’s office added.
Allegations of breach of trust in connection with the loss-making real estate investments are not currently part of the investigation, the prosecutor’s office said.
BVK confirmed to IPE that its offices had been searched by representatives of the prosecutor’s office as part of an investigation involving two former employees. One had already left the organisation, while the employment of the other had been terminated some time ago.
The investigation involves “a third party: in other words, it is not directed at BVK,” the statement added.
“BVK continues to provide full support for the work of the public prosecutor’s office and is cooperating closely with the investigative authorities,” the statement added.
The investigation began after BVK notified the prosecutor’s office of potential compliance concerns relating to its US real estate investments.
BVK contacted the prosecutor’s office last year to examine whether any compliance violations related to the investments might have criminal relevance.
