The fraud trial concerning manipulated scrap at the Hamburg copper manufacturer Aurubis has entered a crucial phase, as the verdict from the district court is expected on Monday. This news has significant implications for investors, as Aurubis is a major company in the DAX index. Here are the key details of the case:
Background of the Case
- Fraud Allegations: Three men are on trial, including a former materials tester from Aurubis, a scrap dealer, and his son. They are accused of selling scrap to Aurubis at inflated prices between April 2012 and August 2016.
- Sample Manipulation: The materials tester is alleged to have manipulated samples by sprinkling gold and silver powder on them to artificially increase the value of the scrap. In return, he received more than 100,000 euros and two gold bars.
Prosecution Demands
- Prison Sentences: The prosecution has requested a prison sentence of five and a half years for the former materials tester, who is charged with fraud, corruption, and tax evasion. A five-year sentence has been sought for the scrap dealer and two and a half years for his son for aiding and abetting.
- Defense: The defense lawyers pleaded not guilty for the defendants.
Impact on Aurubis
- Financial Damage: Aurubis is reported to have suffered damage of over 15 million euros due to the fraud.
- Stock Price: Despite the negative news, Aurubis’s stock was temporarily higher, indicating the overall market trend and the stability of the company.
Relevance for Investors
- DAX Company: As a significant company in the DAX, Aurubis holds high relevance for investors. The outcome of the trial could affect confidence in the company and potentially impact the stock price.
- Corporate Integrity: The case raises questions about corporate integrity and internal controls, which could be of interest to investors evaluating the long-term stability of the company.