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[CRIME] · Austria · 4 sources

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Austrian Integration Fund officials sentenced in real estate scandal

The Vienna Regional Court has issued prison sentences following a long-running real estate scandal involving the Austrian Integration Fund (ÖIF). The case centered on the fraudulent sale of properties between 2006 and 2009.

Former managing director of the ÖIF and another defendant were each sentenced to four years in prison, while a third individual received a sentence of two and a half years. Two other defendants were acquitted. The judge characterized the actions as “not properly, but knowingly criminal,” noting that the properties were sold significantly below market value.

The Economic and Corruption Prosecuting Office (WKStA) stated that the defendants deceived the ÖIF board by manipulating appraisals and organizing decoy bids. They also allegedly presented dilapidated properties to create the false impression that the entire real estate portfolio was in poor condition to facilitate undervalued sales. The total damage to the fund is estimated at approximately 13 million euros.

The verdict is not yet legally binding, as defense attorneys have indicated intentions to appeal the decision.

Entities

Austrian Integration Fund · Economic and Corruption Prosecuting Office · Vienna Regional Court

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