Strauss-Kahn's Luxembourg Bank Faces Preliminary French Probeby
Minority shareholder Ott sued LSK over alleged fraud
Probe also involves Strauss-Kahn's role as LSK's chairman
The Paris prosecutor is conducting a preliminary investigation into Leyne, Strauss-Kahn & Partners, the bankrupt Luxembourg investment company co-founded by Dominique Strauss-Kahn.
At the end of July, prosecutors started studying whether they have the authority to investigate LSK after a minority shareholder, Jean-Francois Ott, filed a criminal complaint, according to a person familiar with the case.
The investigation is the latest legal challenge for Strauss-Kahn since he stepped down as head of the International Monetary Fund amid allegations he assaulted a hotel maid. That case was eventually dropped, and he was acquitted earlier this year at a French trial over pimping charges.
Strauss-Kahn’s lawyer, Jean Veil, didn’t answer calls seeking comment. France Inter radio reported the news earlier on Friday on its website.
Ott, a former executive at Orco Property Group, is a French citizen living in Prague. His suit primarily relates to events in 2014, when Strauss-Kahn was chairman of the fund and Thierry Leyne was chief executive officer, said the person who declined to be identified because the probe is confidential.
Strauss-Kahn gave up his role at LSK last October just a few days before Leyne, a French-Israeli entrepreneur, committed suicide in Tel Aviv. After Leyne’s death, LSK’s board declared the company’s financial situation “irreparably compromised.” A Luxembourg court on Nov. 7 declared LSK and two of its units bankrupt.