Helmut Kiener, founder of the K1 hedge fund group, who is accused of defrauding investors, claims Barclays and other investors have started ??a witch hunt? against him to deflect attention from their own mistakes.
In a written appeal to get Mr Kiener released from investigative custody, his lawyer Lutz Libbertz argues that his client could ??at the most be accused of making bad investment decisions, but not of actions constituting breach of trust?.
The document argues further that Mr Kiener should be released from custody on the grounds of ??complete immunity from criminal jurisdiction? as he is a diplomat for Guinea-Bissau, accredited with the Dutch government.
The examining magistrate on Monday upheld her decision to keep Mr Kiener in custody ?? she had argued Mr Kiener could use aircraft and houses owned by the funds to flee ?? and referred the case to the regional court in Würzburg.
Mr Kiener??s lawyer rejected all but one of the accusations levelled in the arrest warrant: Mr Kiener had only once breached guidelines agreed with Barclays when he put too much money into two funds, Nautilus and Silverback.
In his written appeal, Mr Libbertz said Barclays had demanded Mr Kiener reduce exposure to the funds but his client could not because they had suspended redemptions in last year??s financial crisis.
Mr Libbertz says the bank demanded withdrawal of money from other funds, that had suspended repayments because of the crisis.
