Case 27: Flowtex (Germany, 2000)

The allegedly biggest case of accounting fraud in post-war Germany reached a climax when the managers of “Flowtex Technologie GmbH & Co. KG” received jail terms of up to 12 years after being convicted of fraud linked to 3,100 bogus leasing deals. The scam, which lasted for a decade without raising the suspicion of either auditors or banks, enabled the executives to live luxurious lives, involving grand houses, chalets, yachts, private jets, and valuable paintings. The fraud was “of a scope without precedent,” said judge Michael Meyer. He expressed his incredulity that the scam could have lasted for nearly ten years without being noticed. “It is amazing to what degree and how long the system functioned. The further they moved along in this system, the greater was the snowball and the greater were the debts that needed to be covered.”

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