Leasing giant Grenke is based in Frankfurt.
Viceroy has previously exposedASX-listed sandalwood grower Quintis and graphite miner Syrah,as well as South African conglomerateSteinhoff and German fintechWirecard.But the firm has also been criticised,including by South Africa's treasury,for ambushing companies.
"Viceroy believes Grenke's stock is uninvestable due to blatant accounting fraud,including dozens of undisclosed related party transactions,and the complete lack of internal controls right down to individual due diligence on customers,"the report states.
Grenke was a financier for (Australian) television advertising company Viewble Mediawhich trapped thousands of small businesses around the country in an alleged scam.
Viewble's customers paid $430 a month to a finance company under three-year contracts with a total cost of up to $15,500 for a television with the potential to earn money from display advertising from neighbouring businesses. However,the advertising never eventuated leaving the businesses paying a high price for basic equipment. Viceroy alleges Grenke uses the same model for financing printers and photocopiers and that Viewble was one of several ponzi schemes enabled by its lease financing.
"Advertising revenues inevitably never came through and customers were left holding the bag,"the report states."Grenke’s actions suggest it was party to a larger conspiracy to defraud,as it knocked back complaints,denied knowledge of the existence of the scheme (despite it being written into its contracts),and continued to allow these scammers to write new contracts to the tune of hundreds of millions of dollars."
Viewblecollapsed into liquidation last year leaving more than 1100 Australian small businesses out of pocket.