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The financial regulator BaFin has banned Deutsche Reserven’s lending business. It’s about loans worth millions. Apartment owners whose money is in bonds from German reserves are worried.
‘Something might be going wrong with our reserves,’ thought Christian in Munich at the end of November 2023. The ARD-Magazine Report Munich just showed a post about questionable dealings with homeowners’ savings.
Christian is on the advisory board of a homeowners’ association (WEG), which until recently was managed by a property management company from the Wiesbaden Consigma Group. As an advisory board member, he is an elected representative of the WEG. He does not want his last name published.
“It was only through the report that I realized that our savings might be in risky bonds,” says Christian. It’s about 240,000 euros. His WEG in Munich consists of 80 apartments and urgently needs the reserves because a heating boiler is broken and there is water damage in the underground car park. Although WEG has canceled the bond with DR Deutsche Rücklagen GmbH, it is still waiting for the majority of the money.
Numerous Apartment owner report
Since the end of November, around 40 WEG from Hesse, Baden-Württemberg and Bavaria have joined BR and MR reported. They were all or are with property management companies from the Consigma Group. Their reserves, they report, flowed completely or partially into bonds from Deutsche Reserven. Some have now had their money back, others only partially.
Owners whose savings are still invested in Deutsche Reserve bonds are worried. Deutsche Rücklagen used the money to lend the money, according to its own statements, to companies in the real estate industry; In addition, the loans are secured by entries in land registers. The reporters cannot verify this.
BaFin orders the discontinuation credit business at
In mid-March, BaFin banned Deutsche Reserven from lending business. Under the Warnings & News section on its website it says: “In a decision dated March 12, 2024, the financial regulator BaFin ordered that DR Deutsche Rücklagen GmbH, based in Tauberbischofsheim, must cease and wind up its lending business. It does not have permission to do so.”
Anyone who lends money to others must meet certain requirements. BaFin monitors compliance with these regulations. This is intended to prevent companies from causing difficulties in the credit market through risky transactions. Deutsche Reserven does not have the necessary permission. Deutsche Reserven could take legal action against this decision. The question becomes BR and MR not answered.
When asked, Deutsche Reserven said it was “in close communication” with BaFin and would of course act in accordance with its instructions. The managing director writes: “Deutsche Rücklagen GmbH will of course continue to guarantee the repayment of the bonds in accordance with the bond conditions; BaFin’s announcement does not change this.”
Corporate network with question marks
Deutsche Reserven is part of a corporate network. That’s what it said on the GmbH’s website until mid-April. The network then includes, among others, the Consigma Group and Deutsche Rücklagen as well as other companies in Germany and Switzerland.
Also by mid-April, Deutsche Rücklagen announced on its website that it was part of a corporate network “that is largely controlled by two people”. This is then a managing director of Deutsche Rücklagen and Dr. U. Deutsche Rücklagen leads him as “idea generator and founder” until the website is rebuilt. In addition, Dr. U. Beneficial owner of two companies, which in turn are shareholders of Deutsche Reserven. All of this information can no longer be found on the homepage.
Owners meeting have to decide
In many cases, the BR and MR available, those responsible for Consigma had not obtained a decision from the owners as to whether they could invest the money they had saved in bonds from Deutsche Reserven. But that’s exactly what the case law stipulates, says WEG specialist lawyer Burkhard Rüscher from Munich: “Property managers are only allowed to invest reserve funds in a way that is safe, safe, without risk of loss and quickly available. For everything else, the manager needs an approving resolution from the owners’ meeting.”
The Consigma Group lawyer writes BR and MR, existing management contracts were adhered to. The CEO of Consigma Holding AG, Dr. U., defends the approach. He also considers WEG’s approval of the annual financial statements to be an approval. Further emphasizes Dr. U., one behaves in accordance with the legal requirements and invests the reserves safely and with good interest. There are no known irregularities.
No uniform handling of WEG funds
Not all WEGs that demand their money back are treated equally. A small group of WEGs received their money completely refunded by Deutsche Reserve shortly after the bond was terminated. In other cases, partial amounts were repaid. More WEG are still waiting for their money. In some cases there was no response to WEG’s inquiries. Quite a few are worried about whether they will get their money back.
The German reserves writes at the request of BR and MR: “No investor has to worry about the money invested with Deutsche Reserven or be forced to terminate it early.” The Munich WEG is still worried about whether it will get its money back. As BR and MR ask, answers Dr. U., according to the terms of the bond, the credit will take place on June 30, 2024.
Some apartment owners have filed criminal charges against those responsible in the corporate network surrounding Consigma and Deutsche Rücklagen. Meanwhile, according to research by BR and MR three public prosecutors with the case. So far, the public prosecutors in Stuttgart, Darmstadt and Wiesbaden have not opened any investigations.
You can see a television report in Report Munich at 9:45 p.m. on Erste.