Adler Says Vindicated By Audit Showing Murky Fees, Opaque Values
- KPMG report finds corporate-governance, valuation weaknesses
- German real estate company has been targeted by short sellers
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A forensic audit of Adler Group SA uncovered accounting irregularities and an opaque system of consulting fees but stopped short of alleging fraud, allowing both management and its detractors to say they were vindicated by the findings.
The report -- commissioned in response to claims by short seller Fraser Perring last year -- identified 12.6 million euros ($14 million) in fees from Adler companies through unspecified “consulting” agreements that were paid to Austrian entrepreneur Cevdet Caner between 2018 and 2020. KPMG was unable to determine which services were billed by Caner, who has previously played down his involvement in Adler and who the report identifies only as Extern7.