⏱ 1 min read
Background
Life Forestry Switzerland (LFS), a company based in Nidwalden, offered direct investment in teak plantations in Costa Rica and Ecuador. Investors became owners of the trees, with a right of use or a lease on the plot.
The key points
LFS is now bankrupt, according to an investigation by Correctiv.Schweiz and SRF's Rundschau programme. More than 6,000 European investors, mainly German, had placed around 200 million francs with it.
In Switzerland, around 800 investors had entrusted their money to the company. Most never received the promised returns and fear losing their capital.
Key figures
- Investors in Europe: more than 6,000.
- Total amount invested: around 200 million francs.
- Investors in Switzerland: around 800.
- Annual returns projected in marketing: up to 12%.
What it means for businesses
LFS earned its income by taking a 15% margin on plantation revenue. Its marketing presented teak as a safe haven and highlighted sustainability certifications.
Who says what
The Nidwalden public prosecutor's office confirmed that several criminal complaints and civil actions have been filed. An investigation targets LFS's head, Carl-Lambert Liesenberg, and another person on suspicion of fraud, criminal mismanagement and bankruptcy offences. The presumption of innocence applies.
What's next
The financial crime unit recently carried out five searches. The fate of the plantations, which represent the company's real value, remains uncertain.
Further reading
Sources
Let’s share Romandy’s news
We build the news together.
An idea, an opinion, a wish, a detail to add? Tell us!
