Vienna man jailed for defrauding relatives and friends of 1.8 million euros

A 28-year-old man has been sentenced to five and a half years in prison for defrauding family members and friends of around 1.8 million euros over three years, ORF reported. The conviction for commercial aggravated fraud is final.

The man began soliciting money in January 2023, telling people he could invest it because of his “interest and passion” for financial markets. The mother of his then-girlfriend gave him more than 81,000 euros.

He told the court in Vienna on Wednesday that he had no formal training in finance. When asked why he had taken responsibility for the investment, he replied: “Overconfidence.”

After an option certificate was liquidated, he said he panicked and tried to recover the lost money through sports betting. He continued seeking investors among relatives and acquaintances, who gave him sums sometimes reaching hundreds of thousands of euros.

Only the initial 81,000 euros was invested. The rest was lost through sports betting, with individual stakes ranging from 500 to 85,000 euros. The defendant said he was addicted to gambling and was already receiving treatment.

The case ultimately involved 50 victims, many of whom joined the proceedings as private claimants. Several told the court they had been financially ruined. The mother of the defendant’s former girlfriend said he had repeatedly delayed repayment and that she had never recovered her money. “That was my pension savings,” the 65-year-old said.

The defendant used spreadsheets he had created himself to give investors the impression that their money was generating returns. The court rejected a request from his lawyer, Sven Thorstensen, to submit a private assessment concerning the defendant’s alleged gambling addiction.

Thorstensen said he was in contact with the betting platform to recover money deposited there, arguing that it was an illegal gambling provider. The defendant expects between 60 and 70 percent of the amount paid in to be returned.

Despite the defendant’s confession and lack of previous convictions, the criminal court imposed a fully unconditional prison sentence. The judges said the scale of the losses and the number of victims justified five and a half years in prison.

The judge also said the defendant had reported himself only after coming under substantial pressure, not “for your peace of mind”. The defendant and the prosecutor accepted the ruling. During the trial, the indictment was expanded to include 11 additional victims.