LEONTEQ: Under general suspicion

The last three weeks have been devastating for LEONTEQ, the leading Swiss provider of structured investment products. On October 10, the Financial Times published a report accusing LEONTEQ of money laundering and tax evasion. The article was written by the same journalist who had brought down Wirecard, which of course added to the explosive nature at first glance. The focus is on two transactions from the beginning of 2021 for EUR 750,000 each, which according to the whistleblower should have been reported to the French authorities.

The clarification of the allegation has actually already been examined, but is now back on the table; the matter is somewhat complex, as five countries with specific legislations are involved: Switzerland, the Middle East with Dubai, England, France and an offshore company in the Caribbean. The accusation also criticizes Whatsapp use, which is, however, forbidden at LEONTEQ. It could therefore only be a matter of individual misdemeanors by employees. Allegedly, according to the whistleblower, the appointed auditing body EY was also not independent enough; however, according to LEONTEQ, it was clearly emphasized that independent auditors were mandated within EY. In addition, LEONTEQ has a strict zero-tolerance policy for any non-compliant business conduct. All allegations have been carefully examined and the investigation has shown that there were no significant deficiencies. Nevertheless, the "allegation" is still in the air at the moment. In order to clear the matter up once and for all and to restore confidence as quickly as possible, we would accept the manageable costs and once again commission an independent body to conduct an audit. Item. In addition, it is extremely questionable what the benefit of the whistleblower is in this "small dimension"! We do not believe that "a weighty corpse lies in the cellar!". The share has corrected too strongly! Target price: CHF 85!