Austrian Businessman Charged with Money Laundering Linked to Porsche SE Board and Volkswagen

Siegfried Wolf (65), a prominent Austrian businessman, is facing charges of money laundering in connection with a fighter jets deal. Notably, Wolf sits on the supervisory board of Porsche SE, which holds a controlling role over Volkswagen Group, one of the world's largest car manufacturers.

The allegations against Wolf involve "hidden assets" amounting to approximately €6.8 million that were allegedly exchanged into gold and kept in Switzerland, according to Austria's state economic crime and corruption prosecutor. The funds were believed to be associated with embezzlement activities.

Wolf's spokesperson declined to provide any comment regarding the charges.

The case revolves around the Austrian government's billion-euro purchase of Eurofighter jets in 2003. The investigation revealed that one of the suspects, whose identity was not disclosed by prosecutors, allegedly concealed the embezzled funds amounting to €6.8 million, while the other suspect, possibly Wolf, received a portion of the funds in gold or had them exchanged into gold. The purpose was to obscure the origins of the money and hide its whereabouts, creating a complex money trail.

In addition to his involvement with Porsche SE, Wolf holds positions on the supervisory boards of German car suppliers Schaeffler and Vitesco. He gained media attention earlier this year when it was reported that he had personally written to Russian President Vladimir Putin, offering his assistance in rebuilding the Russian car industry using his contacts in Germany. Volkswagen, at the time, expressed its displeasure, referring to the letter as "irritating."

Furthermore, Wolf has become a significant figure in an ongoing investigation by state prosecutors into government corruption during the chancellorship of Sebastian Kurz, whom he had a close association with.

Porsche SE, in response to the indictment against Wolf, stated that the allegations are unrelated to his role on the supervisory board, both in terms of content and timing. The Porsche-Piech family holds a controlling stake in Volkswagen and a portion of the voting rights in Porsche AG through Porsche SE.

Under the German system, there are two boards in a company: the executive board, responsible for day-to-day operations, and the supervisory board, which oversees the work of the executive board and provides strategic advice.

While the supervisory board of Vitesco, chaired by Wolf, refrained from commenting on his "private business activities," he continues to serve on the boards of more than a dozen Austrian companies.

The case against Wolf highlights the potential implications for the business world when individuals in influential positions face serious legal charges, particularly in relation to money laundering and corruption.

By fLEXI tEAM