Helvetia Wealth gone bankrupt?

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.

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.
 
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 :eek: 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.
 
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.
 
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 [email protected] 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
 
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.
 
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; [email protected] (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?
 
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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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.
 
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?
 
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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