# Helvetia Wealth gone bankrupt?



## Brendan Burgess (11 Jan 2014)

It appears that Helvetia Wealth has filed for bankruptcy. 

Brendan

[broken link removed]

*Helvetia Wealth in bankruptcy*

_"The company once announced an "aggressive" expansion and presented  itself as a poster child of Swiss banking, in particular in the British  Isles. Now it seems to be all over. If the details from Helveita Wealth  are correct, there are over one billion of assets under management  involved."_[one article mentioned 1.2 billion Swiss francs, which is a bit under 1 billion euro]

_Thanks to user Janet for the translation _


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## Brendan Burgess (11 Jan 2014)

Has anyone invested with them?


Where does it leave your funds? 

Are investors with Irish Forestry Services affected? 

http://www.askaboutmoney.com/showthread.php?t=45879

Brendan


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## Jim2007 (11 Jan 2014)

I've never came a cross these guys over here... but then again this is a company with an issued share capital of 200K, two board members (both Germans) and there are lots of little companies like this around.

In 2012 some of the senior management left and the auditors resigned...

To operate in Switzerland they should have been registered with FINMA (not FMA) and as it is not listed as FINMA supervised liquidation, I expect they not in fact operate here.

I have to say it is quiet an achievement for an asset management company to go bankrupt!  Their expansion plans must have involved the payment of some major retros along the way.


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## Mick_52 (13 Jan 2014)

As I understand it, the way the company was set up, meant that it was not necessary for them to be registered with FINMA. 

The insolvency should come as no surprise given that their Scottish based company Dunedin Independent were wound up leaving investors facing losses. I am not allowed to post a link to an article in the scotsman newspaper which supports this claim but a quick google search will confirm this.
 [
The question remains what is the scale of investment in Ireland? Still no reporting coming from mainstream Irish media, very strange given the high profile appointment of Mr. Bertie Aherne as Chairman of the Irish Forestry Fund


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## mercman (13 Jan 2014)

Brendan, you might recall they were chasing people a number of years ago. They made contact with me and I told them to take a hike and they had a pop at you threatening all kinds of legal action. 

I'm not surprised they have gone bang, but from previous experiences, it couldn't have happened to nicer people.


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## Janet (14 Jan 2014)

Brendan Burgess said:


> It appears that Helvetia Wealth has filed for bankruptcy. Here is the Google translation of the article in a German paper
> 
> Brendan
> 
> ...


Just 'cos I can,  here's a slightly better translation than google:

_"The company once announced an "aggressive" expansion and presented itself as a poster child of Swiss banking, in particular in the British Isles. Now it seems to be all over. If the details from Helveita Wealth are correct, there are over one billion of assets under management involved."_[one article mentioned 1.2 billion Swiss francs, which is a bit under 1 billion euro]


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## Mick_52 (14 Jan 2014)

There are comment on the motley fool site in the UK where investors are having no luck in getting a response from Helvetia Wealth. There must be someone who can comment on investment from Ireland? I am particularly concerned about The irish Forestry Fund who were/ are in partnership with HW and irish asset management?


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## Mick_52 (15 Jan 2014)

I see the online magazine responsible investor has reported the story but its behind a paywall


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## Jim2007 (15 Jan 2014)

Sorry, I don't have much time: http://www.swiss-advocate.com/en/ half way done, left hand side.



> *Helvetia Wealth AG* (Zurich, Liechtenstein, Kilkenny, London) Our Law Firm is representing all legal interests of investors having  suffered losses in the course of the bankruptcy of Helvetia Wealth AG,  domiciled in Zurich, with business as well as subsidiaries in Kilkenny,  London and Liechtenstein. In this course of action, we are checking to  bringing in civil as well as criminal actions against the respective  companies and their directors by means of Swiss Bankruptcy Law, Swiss  Civil Code and Swiss Criminal Code.
> 
> Should you wish to discuss  your case strictly confidentially, please do not hesitate to contact  either Daniel Fischer or Stephan Pöhner, info@swiss-advocate.com.


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## Brendan Burgess (15 Jan 2014)

Mick_52 said:


> I see the online magazine responsible investor has reported the story but its behind a paywall


www.responsible-investor.com

You can get a free trial for a month. I registered,but there isn't much there which has not already been covered by the Sunday Times other than the fact in Jim's post that there is a law firm representing investors.


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## mercman (15 Jan 2014)

As far as I remember, Helvetia Wealth were authorised by the Central Bank to conduct investment business in this country. Surely there is some recompense for Irish Investors that have lost out. 

They were a shabby and cheap outfit who persisted in trying to get clients involved. I would certainly be worried for the investors in the Forestry funds which were somewhat questionable previous to these events.


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## Brendan Burgess (17 Feb 2014)

Niall Brady has a piece in the Sunday Times on this 

*Blow for Helvetia Wealth Investors 

*They were granted permission by a Zurich court for a restructuring which could result in heavy losses for Irish investors. 

The Central Bank issued a [broken link removed] about them on Friday which according to Niall Brady 
"the firm was operating illegally in Ireland from its base in Switzerland. While investment firms in Liechtenstein are allowed to sell into the EU, Swiss firms cannot".


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## mercman (17 Feb 2014)

mercman said:


> As far as I remember, Helvetia Wealth were authorised by the Central Bank to conduct investment business in this country. Surely there is some recompense for Irish Investors that have lost out.



Brendan, If this company were authorised previously by the Central Bank and others invested on the basis of this, do the investors have any fall back on past investments if they were authorised ??


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## Brendan Burgess (17 Feb 2014)

I don't think that they were ever authorised in Ireland.


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## Sunny (17 Feb 2014)

That's a bizarre statement by the Central Bank. Considering the high profile of Helvetia Wealth took in this Country, why are they suddenly coming out now saying they are unregulated? Have the Central Bank issued previous warning about them? I always assumed they did European business through their office in Liechtenstein.


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## Brendan Burgess (17 Feb 2014)

Sunny said:


> That's a bizarre statement by the Central Bank. Considering the high profile of Helvetia Wealth took in this Country, why are they suddenly coming out now saying they are unregulated? Have the Central Bank issued previous warning about them? I always assumed they did European business through their office in Liechtenstein.



Good point!

I raised their regulatory status with the  Financial Regulator in January 2007. 

(It's hard to believe that it was 7 years ago.)

http://www.askaboutmoney.com/showpost.php?p=356813&postcount=17


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## Jim2007 (17 Feb 2014)

Brendan Burgess said:


> "the firm was operating illegally in Ireland from its base in Switzerland. While investment firms in Liechtenstein are allowed to sell into the EU, Swiss firms cannot".



I don't know where he is getting his information from, but he is wrong.  Swiss firms are certainly allowed to sell into the EU and Liechtenstein firms actually regulated by the Swiss authorities on behalf of Liechtenstein.  Furthermore, I can not find for them listed as authorized in Liechtenstein either.

It would be interesting to know what the Irish regulators did in this case... In the normal course of events such companies are entitled to sell their products into Ireland.  However the Irish authorities are supposed to jointly regulate them with the Swiss authorities, they can not just wash their hands of them.  I wonder when this firm started pushing its products here, did anyone in the regulators office even bother to call Zurich to see what the story was???


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## Niall Brady (18 Feb 2014)

Jim2007 said:


> I don't know where he is getting his information from, but he is wrong.  Swiss firms are certainly allowed to sell into the EU and Liechtenstein firms actually regulated by the Swiss authorities on behalf of Liechtenstein.  Furthermore, I can not find for them listed as authorized in Liechtenstein either.



Liechtenstein is in the European Economic Area (EEA); Switzerland is not. Investment firms in the EEA can "passport" into the EU; those outside the EEA cannot. Central Bank of Ireland issued warning about Helvetia Wealth when it was found to be selling financial services from Switzerland into Ireland.



Jim2007 said:


> It would be interesting to know what the Irish regulators did in this case... In the normal course of events such companies are entitled to sell their products into Ireland.  However the Irish authorities are supposed to jointly regulate them with the Swiss authorities, they can not just wash their hands of them.  I wonder when this firm started pushing its products here, did anyone in the regulators office even bother to call Zurich to see what the story was???



Central Bank only has a regulatory role when foreign firms that "passport" into Ireland establish a branch in Ireland. Otherwise all responsibility for regulation rests with the home country regulator: Liechtenstein in the case of Helvetia Wealth.


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## Sunny (18 Feb 2014)

Hi Niall.

I missed your article on this. I presume Helvetia were only guilty of doing this in recent times hence the Central Bank warning. Someone in the EEA must have been regulating them at some stage though if they were passporting in products in the past through MIFID?? So were they a regulated entity anywhere?


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## Niall Brady (18 Feb 2014)

Hi Sunny,

Central Bank issued the warning after Helvetia Wealth issued a letter from Switzerland asking clients in Ireland and other EU countries to participate in a SFr1m capital injection to help it cope with a "liquidity crisis".
Helvetia Wealth "passported" under Mifid and is supposed to be regulated in Liechtenstein.


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## Jim2007 (18 Feb 2014)

Niall Brady said:


> Liechtenstein is in the European Economic Area (EEA); Switzerland is not. Investment firms in the EEA can "passport" into the EU; those outside the EEA cannot. Central Bank of Ireland issued warning about Helvetia Wealth when it was found to be selling financial services from Switzerland into Ireland.



Niall it is true that CH is not in the EEA, but then again had you done your research properly you'd know that that it has no bearing the matter under discussion what so ever, because there are other agreements in place to address this issue.



Niall Brady said:


> Central Bank only has a regulatory role when foreign firms that "passport" into Ireland establish a branch in Ireland. Otherwise all responsibility for regulation rests with the home country regulator: Liechtenstein in the case of Helvetia Wealth.



Again had you taken the time to dig a bit deeper you realise that the company you are referring to is in fact a subsidiary based in Liechtenstein (FL-0002.190.878-2), licences by FMA true, but as a money dealer as required by the currency union.

The Helvetia Wealth AG we are talking about is a Kanton of Zurich company (CH-020.3.028.734-8) and as such should have been supervised by FINMA and not FMA.  And yes agreements exist for the Irish regulators to make enquiries of FINMA about the status of Helvetia Wealth AG and even conduct join on site visits if the firm was in fact under the supervision of FINMA, regardless of whether there is an Irish subsidiary or not.

My last word on this subject.


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## Bronte (19 Feb 2014)

Jim2007 said:


> My last word on this subject.


 
That's a bit mean Jim, your advice on AAM is really great, you seem to be a genius on all this kind of investing and are very insightful and I would assume are a great help to many people who invest. I always find your posts interesting and helpful, even if I don't always fully understand them  but no doubt the poor souls who invested in this fund are delighted with your advice. They must be very stressed right now. You pointing them in the right direction must be helping them. I know if it were me I would be relieved to be getting advice from someone who knows the system and Switzerland's rules in particular.


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## Niall Brady (19 Feb 2014)

Jim2007 said:


> My last word on this subject.



Hi Jim,
That's a pity since you know so much more than the rest of us.


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## brynmaxwell (28 Feb 2014)

Hi Everyone,

Below is a message I’ve received from an  informed source (I stress informed source) close to Helvetia Wealth in  Switzerland.

It is clear from the chronology the Court’s  Administrator is UNLIKELY to investigate the mismanagement and misappropriation  of funds to off-shore accounts (highly likely!) unless pressured to. The only  way to ensure a thorough investigation and stand any chance of getting at least  some monies back is for investors to have legal representation through Attorney  Fischer & Partners. If we don’t have legal representation we will be playing  straight into the hands of Helvetia W. I therefore urge ALL investors to contact  a) Attorney Fischer & Partners and b) the Court Administrator  without delay.

(I am not allowed to post links to Fischer  & Partners or the Administrator on this forum, but more information can be  found on Motley Fool under heading “Helvetia Wealth”.) 

Here is the  message I received: -

For whatever it is worth, here’s how the cookie  will crumble, a brief summary of how the Court’s ruling is playing out, a  chronology going forward:

1-Administrator has no formal plan in place yet  until he meets with HW and verifies its books. A meeting will only take place,  once HW meets its obligation as per Court’s order by paying, within 10 days  after the ruling, CHF15, 000 in Court Fees and CHF35,000 in Administrator’s  fees. HW still has few days to meet this obligation. In other words, it is  correct to assume that no work will commence by the Administrator until the  total amount, CHF50, 000 is paid, and failure to do so will result in swift  pulling of the plug by the Administrator and the Court. Despite this fact, and  as per the usual local MO, creditors already started to send their financial  claims directly to the Administrator.

2-The Administrator is of the  mindset, if he were to take Helvetia’s own statements at face value that it has  no funds, thus it is safe to initially assume that the assets aren’t there which  can mean that the Administrator might pull the plug at any time prior to the end  of the Moratorium, April 14, especially if he concludes that HW can’t operate as  a going liquid concern. 

3-The Administrator operates within the Swiss  Bankruptcy Laws and those are only valid within the Swiss Jurisdiction and Swiss  borders thus you can deduce that any search for assets won’t be extended to  beyond the Swiss Borders, not even to Liechtenstein. You can further deduce that  no forensic accounting can be launched, due to lack of funding, in order to  ascertain there was no siphoning of clients funds to offshore businesses and  accounts controlled by Kamil Stender and partners.

4-HW is currently not  represented by an attorney, which can also be a ploy by HW legal team who’d want  HW to present itself as being Judgment-Proof, and since the Administrator won’t  authorize such an expenditure since legal costs aren’t covered by critical  overhead needed to maintain minimum existence during the moratorium. However, HW  was represented during the last proceedings by the same Law Firm, Badertscher  and Partners which represented HW for many years, this law firm know their way  around the legal system and they’ll skate on thin ice when warranted, I say this  with emphasis namely because if any HW clients, read victims, entertain the  thoughts that they’ll forgo adequate legal representation, this will most  certainly play right into the hands and game plan of HW and its legal hit-team.  In other words, while I do put my faith and trust in the Swiss Legal System but  in order to secure adequate vigorous representation, Helvetia clients, read  victims, need a seasoned Legal Team, HW has one and HW’s victims need to be sure  they get adequate representation. I’m convinced that HW is pursuing a game plan  and they’re being coached behind the scenes by their attorneys and I strongly  recommend that a seasoned and reliable Legal team is retained by HW clients and  I strongly recommend the Law Firm of AFP Advokatur Fischer and Partners, both  Dr. Daniel Fischer and Stephan Poehner are quite familiar with the Financial  Services industry and you’ll find them to be a quick read and up to speed about  HW. In a nutshell, due to the Swiss Legal Rules of Ethics, a law Firm can only  assert legal representation once it is paid a fee and can produce relative legal  proof, and AFP can most certainly be satisfied by a token sum in order to  mitigate this requirement and secure timely legal representation for HW  victims.

5-As part of the Court’s recent instructions, the Administrator  is also required to look into allegations of mismanagement and misappropriation  of funds. I must again stress that in view of lack of funding the Administrator  might need prompting to give this area adequate allotment of funds, in lieu of  disposing the entire case expeditively and sweeping the Helvetia Wealth matter  under the carpet, and this can be better secured when HW victims have legal  representation.

6-Any assets of the company will be allotted as  follows:

A-Overhead to ensure the company can have a minimum existence  and operation during the moratorium.

B-Staff’s liabilities, salaries  etc…retroactive up to 2 years.

C-New Investors Funding.

D-Staff  Pension Funds and Social Security.

E-Old Investors Funds.

You can  say that A, B & C are treated as Privileged Creditors and residues of  assets, the remaining balance, will be distributed to D & E.

7-In  general, Administrator might report to the court, by the end of the moratorium  or at any time prior, that the firm can’t sustain itself and thus the business  should be liquidated.

8-The Court is abreast of current media reports, in  Ireland and Switzerland, and in fact the court had asked the Administrator to  look into the allegations being made. I personally deduce that this propelled  the court, due to Media & Public's scrutiny, to shorten the moratorium  period to 2 months in lieu of HW request for 4 months.

9-The  Administrator will publish a call to the creditors to step forward, and this  call is expected to happen around end March to 1st week of April.


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## brynmaxwell (8 Mar 2014)

The problem is the Administrator appointed by the Swiss court will not look  for HW assets beyond Swiss borders unless prompted by lawyers representing  investors. A number of people have contacted the lawyer stephan.poehner@swiss-advocate.com  to register claims, but as Poehner pointed out in an email to a fellow investor  there is a reluctance on the part of investors to pay for legal representation –  “We are also facing the fact that quite some investors  are asking about the matter but seemingly are not willing to invest into lawyers  fees in order to be represented individually or as a group. This might become an  issue as we will not be able to endeavour without Advances on Lawyers Fees.”  This I can understand – who wants to throw  good money after bad – or pay up only to find too few others  contributed to secure effective representation?  However, if we are not  represented there will be no search of Helvetia’s accounts for funds moved to  accounts beyond Swiss borders.

 It seems to me the only way forward is some sort of collective approach –  maybe something along the lines:- 

 1) Ascertain from Poehner the fee needed to ensure an examination of HW  accounts.
 2) Investors to express their willingness to contribute with someone  willing to take on the role (who in addition will determine if the pledges  received are sufficient to cover the fee).
 3) Investors to then send Poehner their contributions.
 4) Instruct Poehner to only proceed upon receipt of the sums pledged.
 5) If investors renege on pledges and insufficient sums are received to  proceed, then contributions are returned.  

 Just my two pennies worth.

 Max


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## Stungman (8 Mar 2014)

*Advocate*

Caught in this mess, have sent initial details to Stephan Poehner. Awaiting reply. Will post any useful info here.
 Think some(ballpark) guidance on what is realistically achievable might help before people commit more cash.


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## Stungman (24 Mar 2014)

*Update*

As a mini update; ive had quite regular contact by email from Stephan Poehner. Some useful information and advice.

 Have made contact with the court appointed lawyer outlining my situation. Informed me HW have lodged the necessary 50,000swiss francs to ensure the examination of the company.

  His report will go to the Swiss High Court after first week in April and the publication will happen a week later. It`s wait and see until then.
  He did affirm that any claims by creditors (if company liquidated) will be a "relatively simple process" and must be lodged one month after such notice.
 Think he maybe worth contacting and noting an interest if anybody hasn`t done so; G.Zondler@wengervieli.ch (ie. court appointed examiner/lawyer)

 I`ve sent details off all investments, communication etc to S.Poehner. No mention of fee etc but think regardless if any possibility of some return of funds, I'd prefer to have him assisting me.
 Anybody else have updates- info?


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## AmadeussVer (25 Mar 2014)

*Time Sensitive, re Helvetia Wealth:*

I’m hoping that this post is seen by as many people as possible so that those who have issues with Helvetia Wealth will prepare a brief summary of their experience, a “Factoid”, and email it to Swiss Attorney Stephan Poehner so that Mr. Poehner can compile all the complaints and present them promptly to the Court’s Administrator.

This is a public service intended only to assist those who have invested in Helvetia and an effort intended solely to assist the Court’s Administrator in his ongoing effort to do a fact finding for the Court.

Please be brief and concise, your personal info will remain confidential and safeguarded by the fact that you’re corresponding with a Swiss Law Firm {AFP Advokatur Fischer & Partners}. The firm is quite familiar with the Helvetia Wealth saga and they currently represent a number of Helvetia Clients.
Please remember that time is the essence.


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## Stungman (21 Apr 2014)

*Court Decision*

Swiss High Court has decided after an examination of Helvetia Wealth Switzerland to extent the moritorium by 6 months to allow the company to attempt to successfully trade their way out of their difficulties. 
Not sure if any details of their accounts etc were disclosed but it may indicate there must be some grounds for optimism that at least a portion of the investments maybe solvent. 
Oct 2014 is next official deadline.


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## Bronte (22 Apr 2014)

Stungman said:


> Swiss High Court has decided after an examination of Helvetia Wealth Switzerland to extent the moritorium by 6 months to allow the company to attempt to successfully trade their way out of their difficulties.
> .


 
It's good news if true, what is the source of your information?


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## brynmaxwell (30 Apr 2014)

Stungman is correct. See below email received from Court Administrator Georg Zondler.

Please be informed that the competent Court has now granted an  ordinary moratorium over the Company for six months until mid-October 2014.  During this time, I will be acting as trustee of Helvetia Wealth AG and in  particular establish a list of all claims against the Company as well as trying  to collect outstanding claims held by the Company, prepare realisation of assets  and work out a liquidation agreement to be proposed to, and approved by, the  creditors. A call to creditors inviting them to file their claims within one  month is due to be published at the end of April, by which time I also plan to  set up a simple website on which claim forms are available and other information  will be published. 

Due to considerable insecurity as regards the value of the Company's  assets, it is for the time being difficult to predict how much unsecured  creditors might be receiving as liquidation dividend. I trust that later in the  procedure better predictions will be possible. All creditors known to me and the  Company, respectively, will be duly informed of the call to  creditors.

As regards your questions on the private equity investments I am not  able to anwer this as I have not looked into those matters (yet). In the course  of further procedures such matters may be investigated, in particular also in  the light of liability claims against directors and officers of Helvetia Wealth  AG.

I trust this is of service.

Kind regards
Georg Zondler


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