Corruption Case At Europe's Largest Real Estate Group - Vonovia

Compliance and fraud have occurred frequently in the real estate industry. Surprising about cases, such as the current one at Vonovia, is the fact that they are not detected earlier or avoided in principle.

As a DAX Group, Vonovia maintains a state-of-the-art and audited management system. An effective controlling system is the first firewall – it is a necessary but not a sufficient tool to avoid fraud. For investors it is difficult to tell if a scam is at hand. However, consistently excessive monthly repair services provide an indication that something is wrong. As the largest player in this industry, Vonovia is of course not an isolated case.

What are the possibilities of fraud?