Contrary to initial expectations, the Düsseldorf Regional Court did not decide today in the case concerning allegedly unlawful Corona aid for the bankrupt club KFC-Uerdingen. There are still some open questions that are to be clarified in a further oral hearing. There is no date yet.
Federal government demands repayment of Corona aid amounting to 764,000 euros
The reason for this is the lawsuit filed by the Federal Office of Administration against KFC’s tax advisor at the time. The office is demanding that he repay Corona aid amounting to 764,000 euros. The federal government believes that the tax advisor unlawfully applied for the aid during the pandemic at the end of October 2020, even though the club had been insolvent since the end of July 2019.
Report on delaying insolvency
In the ongoing civil proceedings, the judge wants to first consult an expert opinion on the insolvency of KFC, which the Krefeld public prosecutor’s office had commissioned as part of its investigations into three club officials. The authority has already brought charges against the men for delaying insolvency and subsidy fraud.
The report is intended to clarify whether or not the tax advisor knew about the club’s financial difficulties at the time the Corona aid application was submitted. If so, the 80-year-old would have to be held liable and pay back the aid.
Tax advisor: “We still had sponsors!”
The defendant denied the allegations in the oral hearing. The club still had enough sponsors, said the 80-year-old.
According to the lawsuit, he registered as a tax advisor for the Krefeld club on October 20, 2020 and, as required by the then guidelines for state aid, also confirmed that “the applicant company was not in financial difficulties at the end of 2019.”
Despite impending bankruptcy, Corona aid applied for
According to court information, the Corona aid for KFC was applied for ten days later, at the end of October 2020. Two weeks after the application was submitted, the tax advisor received the approval notice. On December 14, 2020, 764,000 euros were transferred to the club.
Just five weeks later, the club filed for insolvency. On March 1, 2021, the Krefeld District Court opened insolvency proceedings against KFC Uerdingen 05 Fußball GmbH due to insolvency and excessive indebtedness.
Comparison suggested
The judge announced today that she would continue to advise the parties to reach a settlement. At the end of June, she had suggested in the oral hearing that the proceedings could be ended in return for a payment of 400,000 euros. The federal government’s representatives were willing to do this. The tax advisor was not.
There is no new hearing date yet. The situation is similar in the criminal proceedings that are taking place in parallel in Krefeld. There has not yet been a decision on whether to open the proceedings.
Our sources:
- WDR reporter on site
- District Court of Düsseldorf
- Federal Office of Administration
