Munich prosecutors are investigating suspected corruption offences in connection with loss-making real estate investments by BVK in seven projects in New York, Miami, Beverly Hills, Chicago and San Francisco
German prosecutors last week raided the offices of the $137bn pension fund Bayerische Versorgungskammer, or BVK, in relation to its investments in US real estate.
The investigation by the Munich Public Prosecutor’s Office also involved a raid on the offices of Deutsche Finance Group as well as three private residences in Munich and the surrounding area and documents were seized.
A statement from Munich’s prosecutors said the investigation is directed, among others, against a current and a former employee of the BVK's department responsible for capital investments in real estate as well as against a member of DFG management.
The Munich prosecutors are investigating suspected corruption offences in connection with loss-making real estate investments by BVK in seven projects in New York, Miami, Beverly Hills, Chicago and San Francisco which the fund made with the involvement of DFG.
The investigators suspect the BVK employee exerted undue influence on the fund’s real estate investments and on the process of raising additional capital to continue these projects.
In return the employee is alleged to have accepted benefits for themself and third parties from the DFG management member. These included numerous invitations to high-end restaurants in Munich, London, Los Angeles and New York, as well as overnight stays in a luxury hotel suite in New York.
BVK is Germany’s largest public sector pension fund. It provides pension funds to members of several regulated professions including pharmacists, architects, doctors and dentists.
The fund has projected losses of $950mn from its US real estate investments – though this accounts for just 0.7 per cent of its total investments.
Separately DFG is suing BVK in the US over statements which the pension fund made attributing responsibility for its losses to the fund management company.
DFG said it considered these statements to be false and damaging but BVK has said there is no legal basis for the claim.
In a statement BVK said the investigation involved “a third party” and that it supports the public prosecutors work, which it is closely cooperating with.
In response to the investigation, the pension fund said: “BVK itself proactively engaged the Munich Public Prosecutor’s Office in the summer of 2025 to examine the potential criminal relevance of compliance violations in connection with US real estate investments.
“The investigation is directed against two former employees of BVK, one of whom has already left the organisation and the other whose employment was terminated some time ago.”
