The Berlin labour court has ruled that Ralf Wohltmann, former director of the Versorgungswerk der Zahnärztekammer Berlin (VZB), the pension fund for dentists in Berlin, Bremen and Brandenburg, abused his position by holding conflicting roles in companies linked to the fund.
According to the court, Wohltmann “deliberately placed himself in a conflict of interest” by holding dual positions, which he failed to disclose to the pension fund despite being obligated to do so.
He “abused his position” as director of the pension fund and member of management bodies of VZB’s affiliated companies, the court added, in a ruling following a lawsuit he filed for unfair dismissal.
VZB terminated Wohltmann last year following reports on controversial investment decisions.
Employed by the pension fund since 2000, Wohltmann advised VZB’s management committee, responsible for investment decisions, on asset management.
The committee, composed of dentists working voluntarily, relied on Wohltmann’s advice while he also served as managing director, supervisory board member, and board member of numerous companies in which VZB invested, the court said.
He was chair of the board at Magna Asset Management, a subsidiary of VZB’s holding company Magna Real Estate, managing a real estate fund for the pension fund, and at 7orca Asset Management, responsible for the fund’s overlay management, according to an interview with Institutional Money and VZB’s financial statements.
Wohltmann was also a member of the supervisory board of Kapilendo, a fintech and crowd investing platform in VZB’s portfolio, and Engels & Völkers Capital.
VZB additionally accused him of abusing his roles in portfolio companies for “personal enrichment,” according to the ruling.
Wohltmann earned around €226,000 per year, plus a bonus linked to investment performance, presiding judge Karoline Noack said.
The bonus calculation was “a bit like Einstein’s theory of relativity. It’s tied to the success of the fund, but I don’t know what kind of success,” Noack added during the hearing.
Members prepare objection to contribution increase
VZB has so far calculated €1.1bn in losses from failed investments and has filed lawsuits against consultants, executives, and the state of Berlin to recover the money.
Members fear the pension fund may increase contributions to fill the gap.
Malte Brix, a Berlin-based lawyer specialising in administrative law, represents some VZB dentist members who plan to file an objection against a contribution increase.
The objection is a pre-trial process handled by a committee at the pension fund. If the committee rejects it, members can take legal action, Brix told IPE.
“Should the objection be rejected by VZB, we will file a lawsuit with the Berlin Administrative Court (Verwaltungsgericht), which handles these cases,” he added.
The pension fund might not raise contributions if it is fully compensated through its lawsuits against consultants, executives, and the state.
“It is unclear whether full compensation can be achieved, and experience suggests that this is unlikely,” Brix said.
