$12 Million KaratBars Fraud Allegations Dismissed By German Court

German Court Dismiss KaratBars Fraud Allegations On Behalf Of Martin Steinberg

Steinberg Marketing GmbH, Mainz, Germany informs by press release

The Karat Gold Cooperation failed in two respects and thus also in the final instance, i.e. its attacks against Steinberg Marketing GmbH failed completely.

In particular, the findings in the court decisions are remarkable, significant and groundbreaking for the public and the investing public. In detail: Under the file number Landgericht Mainz 10 HK O 4/19, the afore mentioned company of the Karat Gold Group tried to obtain an injunction against Steinberg Marketing GmbH, demanding various information claims, accounting claims and also the transfer of KBCs.

The court found the application to be unsubstantiated and doomed to failure. The court denied all requirements for the issuance of an interim injunction pursuant to §§ 935, 940, 917f ZPO. In addition, the court denied a so-called “ground for injunction”.

The remarks on p. 4 f. of the court order are remarkable and absolutely groundbreaking, in which clear reference is made to the insolvency risk of the aforementioned applicant and the danger that the opponents would have made uncovered promises intended to exchange gold.

Besides, the resolution states: 

“To the extent that the applicant refers to the fact that a risk of insolvency threatens him because he had promised customers to exchange 100 units of the crypto currency KBC sold to the customer for one gram of gold on July 4, 2019, this does not constitute an “emergency” as defined in § 940 ZPO… In expectation of high profits, the applicant promised to exchange digital crypto currency (KBC) for gold to clients without having an overview of the income from its sale…

The financing model ICO, which the defendant has agreed with the applicant, is a speculative transaction with the crypto currency KBC, which is intended to generate high profits for the applicant. The homepage of the Federal Financial Supervisory Authority (BaFin) expressly warns against investments in an ICO financing model. BaFin warns investors who acquire tokens via an ICO that they are investing in a highly volatile investment that carries

the risk of a total loss of capital. 

If the applicant is threatened with insolvency because she has made “uncovered promises” to customers within the framework of the ICO initiated by her regarding the exchange of 100 units of the crypto currency KBC into gold, this shall not be considered an emergency as defined in § 940 ZPO. Total losses and the resulting insolvency risks are part of the business model of an ICO system…”.

The fact that the court speaks of “uncovered promises” and an “insolvency risk” on the part of the other party in such clarity is remarkable and very rare.

Despite the well-founded decision, the opposite side forced an oral hearing before the Mainz Regional Court and even extended its applications there — against the indications of the court.

She also failed in this respect “cracking” and to the full extent by rejecting the application. Subsequently, she sought the sole remedy of an appeal to the Koblenz Higher Regional Courtas the competent appellate court.

The aforementioned “Karat Gold Cooperation…” under file number 6 W 189/19 also failed there because of the legally binding and final decision of 03.07.2019, because the Senate in Koblenz is the court with the highest ranking and the highest decision. The Senate of the Koblenz Higher Regional Court stated and explained in detail that the “immediate appeal” was unfounded. No claims existed, in particular no claims to surrender.

Steinberg Marketing GmbH has thus achieved an outstanding success with this legally binding decision, which accurately reflects the truth and the correct facts and is hereby affirmed in its entirety with judicial authority.

After careful investigation by the judicial authorities, all deliberately false, defamatory and deliberately raised accusations, which the GmbH rejects once again in severity by means of the present declaration, have proved to be completely insubstantial and in every respect inaccurate. A legally binding decision has now been issued.

The situation after 4.7.2019 can be followed day by day on the Internet. According to Steinberg Marketing GmbH, its doubts, concerns and assumptions, which led to the decision to separate from the companies of the Karatbars Group, have been fully confirmed. This speaks for itself, and we assume that these procedures will on the one hand be self-adjusting and on the other hand will also receive their judicial approval.

What is to be expected from the promise of the gold exchange can now be understood by the current events. This confirms the fears which our society had and it shows that the assumptions of the court are substantiated and justified.

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