Austrian Ex-Finance Minister Karl-Heinz Grasser Sentenced to Eight Years in Prison for Financial Fraud
Background
- Vienna court convicted former finance minister Karl-Heinz Grasser
- Involved in multi-million-euro corruption scandal revolving around privatization of public apartments
Trial and Charges
- Grasser, Meischberger, and Hochegger accused of embezzlement, receiving bribes, falsification of evidence
- Found guilty on August 27, 2021
The Privatization Scheme
- Grasser and an intermediary exchanged confidential information
- Allowed a rival to submit a winning bid for 60,000 apartments, worth €961 million in 2016
- Three years later, the apartments were valued at €1.9 billion
Kickbacks and Bank Accounts
- Court determined €9.6 million (£8.4m) in kickbacks from the winning bidders
- Money deposited in three bank accounts in Liechtenstein
- Grasser and associates criticized for having these accounts
Reactions and Appeals
- Grasser denied wrongdoing and vowed to appeal the sentence
- His legal team labeled it a “blatant misjudgment”
The Trials and Defendants
- 14 defendants faced various charges including money laundering, fraud, and falsifying evidence
- Testimonies from hundreds of witnesses and tapped telephone conversations
- Unclear if the ‘honey-trap’ video contributed to the financial aspect of the corruption case
Timeline of Events
- October 2020: Corruption trial started
- August 2021: Karl-Heinz Grasser, Walter Meischberger, and Peter Hochegger found guilty
- August 27, 2021: Grasser sentenced to eight years in prison
- 2016: Consortium led by a rival purchased 60,000 apartments for €961 million
- 2019: Apartments valued at €1.9 billion
- 2018: ‘Honey-trap’ video shocked Austria