Czech billionaire Radovan Vítek is being sued for allegedly defrauding a New York hedge fund and a Czech investment firm of more than $1 billion, Bloomberg news reports.
Kingstown Capital Management LP and Investhold Ltd. filed a lawsuit against the Czech real estate mogul in a Manhattan federal court on Wednesday, accusing him of engaging in a racketeering scheme spanning a decade.
They claim Vítek used a web of shell companies and “straw owners” to gain control of a Luxembourg-based real estate development company in which Kingstown Capital held a substantial interest.
He then sold the most valuable assets at “distressed prices” to entities he secretly controlled, the lawsuit alleges.
Vitek is worth about $2.3 billion, according to the Bloomberg Billionaires Index. His company CPI Property Group SA is also named in the suit, filed under the RICO racketeering act, as are J&T Banka, Milada Malá (Vítek’s mother), former Orco CEO Jean-Francois Ott.
Kingstown is owned by two Czech entrepreneurs: Marek Čmejla and Swiss citizen Jiří Diviš.
Jana Ciglerová: Americans say their lives are fantastic, Czechs say everything is terrible – neither is true
Study: Demand for new flats in Prague set to keep outstripping supply
“There is good, better and then there is the USSR.” – New book depicts life in communist Czechoslovakia through memories of people who experienced it
‘The fat lady sings’: Prague’s State Opera marks restoration to former glory with gala concert
CzechTourism head hints attracting tourists no longer agency’s main goal