At the end of 2017, Vitek was fined by the Luxembourg regulator CSSF in relation to the acquisition of shares in Orco Property Group, alleging an “undisclosed concert action”.
The lawsuit was filed by a New York hedge fund called Kingstown, along with Investhold LTD and Verali Limited, entities controlled by Marek Čmejla and Jiri Divis, who were previously indicted for fraud in Switzerland.
The plaintiffs claim Vítek used a web of shell companies and “straw owners” to gain control of Orco Property Group and that Vitek.
In July 2019, the Luxembourg court dismissed Kingstown’s 2015 claim against Vitek’s CPI Property Group, saying in its ruling it wasn’t clear why the company should be “condemned” with the other defendants.
[7] Philippe Magistretti, CMA’s managing director, said he had not been questioned by Valais prosecutors or even asked to discuss the matter, and that minority shareholders benefited from the transaction.
If Vítek’s CPI acquired DPP and NHD land, the second richest Czech would have complete control over the vast area of the wider center of Prague.