The insurance company allegedly defrauded of 22.5 million euros?

In the Cigna case, the Economic and Corruption State Prosecutor’s Office (WKStA) has for some time revealed explosive facts, the content of which has now been made public via KURIER. A subsidiary of a well-known German insurance company said it was the victim of a “fraud case at Cigna Group”.

At the center of the case is Forum Donnastad Holding GmbH, whose shares are indirectly held by Cigna Development Selection.

The urban development project “Vienna Twentytwo” has been under construction in Vienna-Donnastadt since 2019. Four components have already been completed and two will follow by the end of 2025. ARE Austrian Real Estate Development and Forum Donastad Holding are involved in the project implementation company. With the bankruptcy of Cigna Development, the shares of Forum Donastad Holding were transferred to ARE at the end of January 2024. Cigna is no longer involved in this program.

Confident

Let’s turn the wheel back two and a half years. In December 2021, Forum Donastad Holding financed 45 participation certificates with a total nominal value of 22.5 million euros to the “Vienna Twentytwo” project. A subsidiary of a German insurance company subscribed to these profit participation certificates.

“It was clear at all times that the profit capital was to be used only for the Vienna Twentytwo project,” the ad said. What’s more: “Before the participation capital was subscribed, representatives of Forum Donastadt Holding confirmed in writing to the German insurance company that “the proceeds from the issuance of participation certificates will be used fully and exclusively for the implementation of the Vienna Twenty2 program. And for this purpose the statement of facts is continued to be sent directly and indirectly to private property companies. KURIER has a written guarantee from two Forum Donastad managing directors.

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Passed?

As a result of Cigna Development’s bankruptcy, “not one cent of the €22.5 million in profit participation capital has been allocated to the Twentytwo project,” ARE reportedly confirmed to the reporter. “There is a strong suspicion that the entire interest capital was improperly transferred directly to Cigna Group,” it continues. Profit participation capital will still appear in Forum Donastad Holding’s 2022 balance sheet, but will not appear in interim financial statements until December 31, 2023, according to the announcement. However, it lists long-term loans of 24.75 million euros to affiliated companies. However, the Vienna Twenty2 project companies reportedly “did not avail themselves of any relevant shareholder loans”. The German insurance company feels cheated. “Had the informant known at the time of subscribing to the participation capital that the capital would not accrue to the scheme, he would not have subscribed to the participation certificates.”

However, when asked by KURIER, WKStA declined to comment on the current fact-finding and related investigations.

project
The Vienna Twentytwo Quarter has been under construction in Vienna-Donastadt since 2019. The project consists of six components, four of which have already been completed and two of which will be completed by the end of 2025

relationship
Forum Tonastad Holding GmbH (Cygna Development) held 51 percent of project company Foto Holding GmbH & Co. KG, and ARE held 49 percent.

Acquisition
After the bankruptcy of Cigna Development, negotiations took place with Forum Donastad Holding and the restructuring manager. Eventually, ARE completely took over the project organization on January 29, 2024

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