EliteClub and the insolvent EURAM Bank

At the same time, there are links between Euram Bank and the controversial EliteClub International. EliteClub, operated by Elite CB International – FZE, is suspected of pursuing an opaque business model characterized by manipulative contractual structures and unclear cash flows.

According to reports, EliteClub funds are deposited at EURAM Bank. However, only accounts up to 100,000 euros are secured, while the individually affected EliteClub owners would probably get nothing in the event of a total financial collapse.

In the criminal complaint already filed with the Austrian Public Prosecutor for Economic and Corruption Crimes (WKStA), those responsible at EURAM Bank are named and accused of aiding and abetting as well as complicity. According to the information available, these individuals are said to have facilitated or actively supported criminal activities.

In a statement submitted to the public prosecutor’s office via his lawyers, Hubert Freidl stated that the primary target group of the EliteClub had been the Lyconet marketers, in order to specifically recruit them as members.

EliteClub advertises exclusive business and lifestyle offers, but is described in several reports as a potential Ponzi scheme. The Austrian Financial Market Authority has been keeping a critical eye on EliteClub for some time, particularly in connection with the business practices of Lyconet and myWorld.

The Vienna Public Prosecutor for Economic Affairs and Corruption is also investigating those responsible at European American Investment Bank for allegedly using veiled corporate structures in Dubai and London to prevent investors from legally reclaiming their money.

Translation of Hubert Freidl’s statement to the public prosecutor: Regarding the EliteClub

a)
The request from the WKStA for a statement contains numerous references to rulings, some of which concern the “EliteClub.” While it is connected to the system described above in certain ways, it is neither legally nor economically integrated into it. In order to fully clarify the existing accusations, I would like to address this matter in more detail as well.

The Austrian Financial Market Authority (FMA) found that the bank had serious deficiencies in the prevention of money laundering and terrorist financing, which had already led to a ban on new business. In addition, there was a high need for write-downs in the bank’s loan portfolio, resulting from problematic lending decisions in recent years.

A required capital increase of at least EUR 25 million was not carried out, and a plausible self-liquidation could not be demonstrated.

These factors ultimately led to the FMA prohibiting business operations. As a result of the closure, all of the bank’s accounts were frozen.

On 6 December 2024, the FMA also filed an application with the Vienna Commercial Court to open insolvency proceedings against the assets of EURAM Bank, after the bank had reported over-indebtedness due to non-performing loans. The closure was carried out to protect the interests of creditors, as the bank had neither carried out the required capital increase nor could it provide credible evidence of self-liquidation.