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High fines after million-dollar bankruptcy in Carinthia
“We’re growing the future!” That was the slogan of the Klagenfurt-based company ” My First Plant ” (MFP). But what they were primarily cultivating was a mountain of debt. Founded in 2020, MFP went bankrupt in November 2023. The bankruptcy proceedings, with liabilities of approximately €5.23 million, are still ongoing. Even before the insolvency, the Klagenfurt Public Prosecutor’s Office (StA) and the Economic and Corruption Prosecutor’s Office (WKStA) began investigations.
1.7 million euros in damage
The first outcome was heard on Friday at the Klagenfurt Regional Court: The former MFP managing director (34) had to answer for tax evasion before a panel of lay judges presided over by Judge Gerhard Pöllinger-Sorré. The public prosecutor’s office accused the 34-year-old of failing to pay corporate capital and income taxes. The alleged damages amount to approximately 1.7 million euros.
Defendant confesses
The defendant largely confessed and stated that “the situation had completely gotten out of hand due to massive increases in sales.” However, he claimed that he had not acted with malicious intent. After a trial lasting just under an hour and a half, the Carinthian was sentenced to 15 months’ suspended prison sentence and a €400,000 fine. The prosecution and defense did not submit any statements, so the verdict is not final. Unlike the €200,000 fine the company was sentenced to under the Act on Responsible Persons in Associations.
But the “My First Plant” case isn’t over yet. The WKStA (Federal Public Prosecutor’s Office) is continuing to investigate five suspects on suspicion of fraud. The potential damage currently amounts to approximately 16 million euros, and there are said to be approximately 17,000 fraud victims worldwide, primarily in Austria, Germany, and Switzerland. MFP allegedly collected money from its investors for thousands of cannabis plants , but never ordered or planted them.
Klagenfurt Gang
There were close personal ties between MFP and the cryptocurrency network EXW – the so-called Klagenfurt Gang : Three MFP shareholders, one of whom was a managing director, were also charged in the EXW fraud trial. However, the MFP CEO was acquitted in this case .
He and all other suspects and accused are presumed innocent until final judgments are made.
