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Hamburg Court Jails Three for Multimillion-Euro Fake Pawnshop Fraud

Judges said more than 400 investors were lured by promises of up to 25% returns using a sham luxury-goods pawnshop.

Overview

  • The Landgericht Hamburg imposed prison terms ranging from five years and three months to seven years and four months for organized fraud.
  • A fourth defendant received a 1 year 10 month suspended sentence for money laundering after serving as the nominal manager.
  • The court determined investor losses exceed €14 million and ordered confiscation of the proceeds.
  • An expert found the touted €12 million in collateral was worth about €20,000 despite the staged display of luxury items.
  • Police raided the storefront and 12 other locations on October 15 last year, and the verdict followed confessions under a court agreement and is not yet legally final.