Victims abandon civil claims over Kaprun fraud losses

Victims of an alleged million-euro fraud case in Kaprun are choosing not to pursue civil claims because of the costs and risks involved, ORF Salzburg reported. The man identified as the alleged ringleader was sentenced last week to 20 months in prison, suspended, for serious commercial fraud, breach of trust and giving false evidence. The verdict is not yet legally binding.

The defendant had operated in Dubai’s wealthy business circles, seeking investors, projects and consulting work for a company from the Pinzgau region. He acquired the Dorfkrug hotel restaurant in Kaprun for 11 million euros, but the seller never received the money. The seller eventually regained the hotel after years of legal action and suffered substantial financial losses.

The Salzburg Regional Court examined only the case of one company, which had allegedly transferred more than 160,000 euros to the defendant for consulting services and help establishing contacts with investors in Dubai. When the promised results failed to materialise, prosecutors charged him with serious fraud and breach of trust.

Several other people from the Pinzgau region have since reported financial losses. Food suppliers were left with large unpaid bills, while a plumbing company lost money after the defendant presented himself as a construction manager.

“We have discussed it with our lawyers, but it makes no sense,” said Arwin Wieser, a managing director. “Before receiving nothing or having to endure a huge amount of stress in court, you draw a line under it and move on.” Several other victims do not want to speak publicly about their losses. Markus Casna, the reception manager at the Dorfkrug, said they had suffered severe damage, both financially and psychologically.

The hotel restaurant also incurred further losses, Casna said. No computers were left, meaning all data, emails and other information had disappeared. All locks and the key-card system had to be replaced because the room cards were missing.

The defendant admitted the offences in court and said he regretted them. But one victim pointed out during the hearing that his admission did not change the fact that business partners could not afford lengthy civil proceedings with potentially high legal and court costs.