Spanish police say K1’s Dieter Frerichs ran into the ocean with a gun and shot himself when police came to question him about K1, the fund of funds that was allegedly being run as a $300 million Ponzi Scheme, says the Telegraph.This story is unremarkable until the ending, when, the story is that the police came to Frerichs’ home this weekend on Saturday and attempted to bring him in for questioning.
According to the Telegraph:
A spokeswoman for police in Mallorca told Bloomberg that officers had arrived at Mr Frerichs’ house in Palma at 11.30 on Saturday morning, where they found him sunbathing. He took out a firearm and ran into the sea where he died.
The strange part of the story is that he had a firearm handy while he was sunbathing. Did Frerichs know the police were coming that day? Or did he always have a gun at his side because he assumed that they inevitably would? And then, he wanted to spend the last 5 minutes of his life sunbathing?
Ponzi suicides are, sadly, becoming a trend. This guy even sent a combination liquidation/confession/suicide note.
Now, the beginning of Frerichs’ story for those interested:
Frerichs had worked for K1 alongside the German fund’s founder, Helmut Kiener, who German police already are holding in detention and have been since October last year.
The claims against the fund are that Kiener took funds from the clients of major banks (apparently JPM and Barclays) and pledged to invest them in hedge funds. Instead, he (allegedly) bought private jets and property in America.
Frerichs had been the managing director of the two and only K1 funds.